Frequent credit hurdles include everything from serious problems like past bankruptcies to minor ones such as late payments on a credit card. But a home hunter also has to contend with credit agency errors and clerical mistakes, which in some cases can even intersperse someone else's history with the buyer's own, O'Connor says.

Either way, a buyer should allow one to two months for fixing any problems so questions don't come up during the approval process. Residents of some states can obtain their credit report free once or twice a year, while most have to pay a charge, usually $8 plus tax. For more details, check out Bankrate's comprehensive guide to credit.

Getting the money
A borrower should next organize documents that catalog assets and liabilities.

About 60 days before the expected move-in date, a prospective buyer should gather:

• Pay stubs to show salary.
• Bank records and other documents to show balances in checking, savings and 401(k) accounts.
• Records of outstanding debts and payments on cars and other property.

Armed with that, the buyer can square off with a potential lender for the pre-qualification process. Lenders evaluate a customer's credit and income information during this procedure to estimate how much home the individual can afford. The review can take as little as a few hours to as long as a couple of days, says Cathy Whatley, president of the real estate firm Buck & Buck Inc. in Jacksonville, Fla.

Finding the house
The next three weeks typically comprise the biggest part of the hunt. A potential home buyer in this stage should first find a trustworthy Realtor through consultations with friends,or trolling the Internet and interviewing prospects, Blakeman says.

After that, a tour of the neighborhood, review of area schools and two or three trips with the agent to view houses, though some people fuss over the process more than others.

"We have people come into town on a house-hunting trip who are going to be there less than a week that look at homes and buy one in a couple of days," Blakeman says. "Then there are some who want to make a career out of it and look at all 26,000 homes in Houston."

While searching for the perfect home, the buyer should also meet with the lender for pre-approval, which should not be confused with pre-qualification.

"With pre-qualifying, you have a lender look at what your earnings are, what your monthly obligations are and based upon that information, they give you an amount of a mortgage they feel you can qualify for," Whatley says. "But that's done based on documentation you have in hand or what you can tell them.

"Pre-approval means they've physically sent out forms" to a borrower's employer, bank and other places to make sure everything is in order, Whatley adds. "In return, you get a bona fide letter saying you are credit approved."

Closing the deal
That can make all the difference during the next step, too. With just over a month to go and the dream home picked out, a buyer needs to be prepared to negotiate price and other terms with the seller -- a process made easier by the lender's "thumbs up."

"With a pre-approval, you're going to have more leverage when you make an offer," says O'Connor of the Mortgage Bankers Association. "You can say, 'I've got a loan approved already that's sufficient to purchase this home,' and that makes you more attractive to a potential seller."

Most prospective home buyers can still expect to haggle for about three days before signing a purchase contract with the seller. The contract will spell out conditions each party has to meet for the sale to go through, and a closing of the sale will likely hinge on both the buyer's ability to obtain the loan and the seller's completion of some home repairs, Whatley says.

After the parties reach an agreement, the buyer's lender will take over for the last stretch. The company will appraise the value of the property to be purchased, make sure it has a clean title and run any final checks before arranging for closing, says O'Connor. That meeting, often held in the offices of an attorney, title insurance company or Realtor, involves the prospective buyer bringing a certified check or other guaranteed form of down payment.