Buying a house can be a wonderful, yet taxing experience. You'll have to pick the perfect house, in the perfect neighborhood, but what else must you keep in mind when searching for a house?

Here are some tips you should use when going through the home buying process.

Check your credit

You should know your credit score and how your credit reports look before shopping for a new home. You're entitled to one free credit report per yer from each of the three major credit bureaus. Go to www.annualcreditreport.com and pull your credit reports from Equifax, Experian and Transunion. Check them for any inaccuaracies, collection accounts or other negative information. If you find negative items, dispute them with all three credit bureaus as this could keep you from qualifying for a mortgage. Another free tool is available from creditkarma.com. Creditkarma gives you your Transunion credit score and also tracks all aspects of your credit report. You get an updated credit score every week.

Estimate your target price

Aim for a house that is about 2.5 times your annual salary, but check various online calculators online that help you measure what you can afford. Make sure to remember your monthly bills, homeowner's insurance and other expenses.

Make a downpayment

Thanks to recent programs, you won't always need the traditional 20 percent downpayment for a home, but if you can, try to make a healthy downpayment. The more downpayment you can afford, the less time it will take for you to pay off the house.

Get pre-approved

Visit a local bank or credit union and ask for their mortgage pre-approval service. The banker will look at your income, debts and other financial information to get you pre-approved for a set amount. From there, you'll know what price range of homes to go searching for.

Move to an area with good schools

Even if you don't have kids or don't plan on having kids, property values in areas with good schooling systems are higher. When it comes time to selling your home, you'll be able to sell the house for more than a house in an area with a subpar schooling system.

Bid wisely

When you start putting offers on homes, do your research. See what the price of houses around the home you are looking at are selling for. Try to put in an offer of about eight to 10 percent less than what the seller is asking, but don't go too low.

Choose the best mortgage

Is a 15-year mortgage or a 30-year mortgage right for you? It depends on your situation. Mortgages are becoming more user friendly and rates are very low right now. Talk to your banker, inform them how long you want to stay in the home and tell them about all of your expenses and bills.