Talk to a lender to find out their buying power.

My #1 suggestion is to work on their "dream" credit before doing anything else. After that get on a strict budget where you can save, save & save more.

 A great loan officer is your best friend.

When you have 25% in cash (20% for a DP/equity and another 5% reserves), THEN buy a home whose monthly payment will not exceed your weekly net income.

Ability to buy a home and the wisdom to own a home are not interconnected.

Start investigating & they'll find out it's easier than they thought. It's always cheaper than rent at least in my Chicago Metro area so go for it.

Get the best Realtor they can find. Give them the criteria of an excellent Realtor so they can evaluate the best suited Realtor for their purpose.

A good discussion with a competent mortgage loan officer who can discuss the alternatives.

I agree with Kevin J. May   A

The first time home buyer needs to be prequalified in order to determine what he/she can afford.  It is a waste of everyone's time to show them property that they don't qualify to purchase.

Get preapproval and do not purchase at the upper end of their limit. 

Look at the average home ownership term for the area and then review the property tax and insurance rate inflation for the same area. Do not purchase unless the future term of ownership is still affordable at curent income levels.

Dont shoot for your "Dream Home", buy something that you can Easily afford.

I would connect them with lenders that I typically work with. These are lenders that I know are good and will help them.

My advice is to spend less than the gank says you can...you may have a chance then

find guidance from a mortgage officer who knows what he/she is doing.....and tie in with a buyer's agent who is well-versed with buyer agency....

My advice to every first timer is get into the market. Don't expect your dream home. Compromise on some items you can add to the house at a later time. Stick to your Credit Approved" loan and price and don't look above that! My Mom used to say, 'your eyes are bigger than your stomach!" Buyers need to take this to heart. But become "Credit Approved" which means the ONLY items remaining is an appraisal, clear title and the contract. I've been going in with NO loan contingency as my lender is super strong and when he says they are fully "Credit Approved" he means it!

Rent first.

Too generic a question. Send them to a good lender and find out what they can qualify for.

An eye to eye with the subject source is not only free but necessary to begin

Get preapproved by a trusted local mortgage loan officer and buy now before interest rates go any higher.

Talk to a loan officer get qualified before you start looking....

Eligibility does not mean you are qualified to be a home owner.

Be sure they have reviewed their budget, and KNOW they can pay the mortgage.

Best investment you can make,  Look at the history of homes prices.

Fix your credit for three months, stop buying junk on credit, and save

Anthony Acosta - ALLATLANTACONDOS.COM nailed this one!

Great question...one that I wish that all Agents would embrace. My professional opinion is to follow the steps & advice in the following blog on AR:

http://activerain.com/blogsview/4899160/pre-qualification-vs-pre-approval-vs-cross-approval-vs--10k-assurance

Mike Albert Get an approval letter to see what you can afford.

Talk to a goood and trusted lender. -Kasey

Dave Ramsey days 20% down and 15 year fixed.

Buy within your means. In other words, don't borrow $300,000 just because the bank is willing to lend you that much.

Joe Pryor nailed this one!

Good question Mike Albert and lots of good answers.  Enjoy July 4th holiday.

Get prequalified.

Mike Albert - I share the KCM chart with them most of the time they realize that homes are going to be getting less affordable as time passes.

Start with rent and own comparison. 

Get pre-approved with Jason E. Gordon 

Talk to an experienced lender or better few before committing to one. 

Speak or meet with a reputable lender and the lender will qualify and present the buyer with options if the buyer is able.

Turn off HGTV.

Never visit the Zillow website.

Start by meeting with one of my preferred lenders - then, let's talk shopping for a home!

Hire and experienced agent!