Even with this increased optimism, the prospect of buying a home may still seem overwhelming for many first time purchasers. Scott Van Dellen, director of affordable lending for the nation's largest independent mortgage lender and servicer, Countrywide Home Loans, Inc., recommends a few simple steps to help bring you closer to buying a home.

• Get prequalified - Pre-qualification assesses an applicant's ability to purchase a home, telling you exactly what you can afford. Countrywide offers free prequalification through its House America® Counseling Center, an educational public service which recommends personalized plans to help you qualify for a home loan.

• Investigate affordable lending programs - Check out affordable lending programs such as Countrywide's House America, which requires as little as a three percent downpayment, as well as more flexibility in areas such as debt ratios, credit and employment history.

• Examine your credit record - It's a good idea to review your credit report with a mortgage lender before considering purchasing a home, especially if you have had any credit problems in the past. Countrywide's Counseling Center offers a free credit repair manual, "Your Credit and You," which can help you resolve credit issues that may be preventing you from obtaining a home loan.