The profile of a first-time buyer differs depending on who is asked. According to the latest National Association of Realtors Profile of Home Buyers and Sellers, the first-time homebuyer's average age was 31 and average annual income was $60,300.

"I don't really think there is a specific profile you can categorize first-time buyers in today's market," said Sean Manning of Coldwell Banker in Los Gatos. "Over the past six months I have worked with various first-time buyers, including a young newly married couple, a middle-aged woman who has been renting for 25-plus years, and a mother-daughter set of buyers. However, the majority of my first-time buyers are younger newlyweds, or younger single people with professional careers."

Manning said the first-time buyers he has worked with tend to want "older" homes with character and charm.

"My first-time buyers also want a neighborhood area with a strong sense of community and some sort of community-gathering area. That is why I have sold many homes in the Willow Glen, Los Gatos, and Rose Garden areas. These areas offer the older character homes and have strong community backbones with a sense of history," Manning said.

Although housing affordability has become a key issue in Silicon Valley, Manning believes almost everyone can afford to buy some sort of property these days, especially with interest rates still very low and 100-percent-financing options.

"I find it interesting that when I have my first-time buyers meet with my loan agent, they always qualify for much more than they were initially thinking. I think many people don't realize they can afford to buy a home when they actually can," Manning said.

Since most first-time home buyers will have the house for less than five years, Manning advises them to explore their different loan options and to look at the more aggressive loan programs that will offer lower payments. That way they can take the monthly savings and put it back into the home in the form of property improvements to help improve equity when selling the property down the road.

"I help them through the process by keeping it simple and fun for them. Oftentimes they are hesitant and a bit scared to begin with, so I don't weigh them down with things they don't need to be concerned with," Manning said. "I also let them know that their first home may not be their ultimate dream home, but the sooner you buy a starter home, the sooner you can leverage equity to obtain your dream home."

Scott Larson, a loan consultant with Washington Mutual in Saratoga, thinks there is no set profile for a first-time buyer. He recently held a class for first-time home buyers that included one older couple, two single women, one older husband and wife in their 50s, and one younger couple in their late 20s.

"My part of the transaction is to help them understand what the loans can do for them in helping them to afford a home. Many people do not understand the level at which they can use the mortgage to help purchase more home," Larson said.

The difference between the types of loans can make a substantial change in the house that the customer can afford, resulting in more home and a better neighborhood. This allows them to choose based on knowledge and an evaluation of the risks involved, balancing this against the ideal home they are looking for, said Larson.

M.J. Miller, a mortgage broker with Diversified Capital Funding, believes financing can sometimes be the most frightening part of the home-buying process.

"Most of us offer to meet with the client and provide lots of written information about financing terms they'll come across. There is 100-percent financing available and that makes purchasing without a down payment possible. After consideration for the income-tax savings, it sometimes cost less to buy than to continue renting," Miller said.

Realtor John Leslie of Alain Pinel Realtors in Los Gatos finds most first-time buyers can afford something in the $400,000 to $600,000 price range.

"If I bond with a first-time buyer either though an open house or by referral, I tell them all the steps they have in front of them. I work on easing their fear of making a mistake, which is usually the most common fear," Leslie said.

As a Realtor, Leslie tells them what they can expect from him and explains the path he will follow to get them a home.

"I get them involved in my use of the Internet and have them check www.mlslistings.com. I update them as to new listings and report back to them whether a listing meets their criteria, what pluses and minuses a possible choice offers, and I preview every home before they see it. I take them out to view property that meets their criteria and avoid fringe properties that are hard to sell," Leslie explained.

Most first-time buyers do not have a clue when it comes to the escrow process, so Leslie tells them what to expect and what to do when the time comes. "I go to all the inspections and review all the disclosures and reports with them and follow up on any of their worries or issues," Leslie said.

First-time home buyers in the initial stages of the process don't have to worry about all the steps ahead if they make sure to find a knowledgeable and professional Realtor to guide them along the path to homeownership.