Have good credit
This is something you haven't heard before, but it is important none the less. You must have a credit score of 580 to even be considered for a home loan, and even if you do it may not be worth your time. Such a home loan with a minimum credit score will charge you higher interest, not to mention a co-signer to assure that someone on the deed [who isn't you] has good credit. Remember if you fail to make your payments, the co-signer will have that responsibility, and nobody wants to have extra debt. Also be leery of places saying they can get you home loans with bad credit or no credit. Those loans may not be all that they're cracked up to be, and may actually hurt your credit. It's always good to be pre-approved by a bank.

Conversely if you have good credit, more doors open for you. Those with good credit will get a lower interest rate over the life of the mortgage, and if you are a 1st time buyer, there are reputable programs that can help you, just ask a loan officer for details. Many housing developments offer incentives like a new car or down payment assistance to buyers with good credit. Housing lenders want the best possible credit living in their homes, and they will bend over backward to get you in if you have the proper income coming in which leads to. . . .
Be Pre-Approved
Getting pre-approved for a home loan is a giant step in the right direction. Pre-Approval determines how much home the lender sees you fit to buy. The Loan Officer will ask you for information on your monthly income, bank account balance, and debts to determine how much home you can buy. Whatever number it is, that will be the price range you will have to look in your search for a home. If you are not satisfied with your number, then maybe the time isn't right for you to buy a home. You can buy a home for more than your pre-approval price, but you will be on the hook for the rest, for example if you've been pre-approved for $90,000, but you want a home for $120,000, you can get it if you have $30,000 lying around somewhere, not to mention earnest money. Then if you can pull off that trick, the next one will be to see if you can sell the bank on making your monthly mortgage payment. It doesn't matter how much money you have lying around, if you don't have proof of a solid income to back it up, a bank may not accept you, and it will turn out to be counter productive.

That's why it's good to stay within you loan range, the lower the better. The more you stay within your approval range, the easier it will be for you to get your home. You may even get money back at closing!

Looking for a home
The Internet makes it easy to find a home, you can also go to a real estate too. When you go out looking for a home, home go out with dreams of a house on the best side of town when you don't have the money to do so. Also don't out asking for more house than you need, if it's just you look for a small home, 2-3 bedrooms with no upstairs [saves on heat]. The newspaper can be a resource, but be careful. Many homes in the paper may be "Investor Homes", houses that need massive work on them to just make them livable. If you're going to be on a shoe-string budget in the first place, don't even consider them.

Another aspect is neighborhood. Understand that your budget is your community. Find a area that is good for you,be it for transportation, shopping , schools, etc. Be prepared to live where your shoe-string budget takes you if you are determined to purchase a house. Don't live in an area that doesn't fit you just to get a home. You have to be able to live in that community for an extended period. In other words don't live in a bad neighborhood without understanding the way of life, or moving to a remote suburb without owning a car. Remember, a home is not an apartment. You can't renew it yearly or move. Homes are a long term investment.
A good tool in finding a home is a real estate agent, however be careful with some of them. Their job is to sell houses, that's their hustle, and some will stop at nothing to get you in any home. Don't let some agent tell you what you like, you tell them what you like, conversely let the agent speak up for you when the time is right too. Finding a good agent can be tough. If one is referred to jump on it, that person may be one of the good ones. A tell-all sign of a good one is one that will return your calls. Many of them will big-time you if the home you want to see won't net them a big payday. If you're working with an agent make sure you know who's paying who? Some agents charge the seller their commission, some charge the buyer. Be careful and ask questions when meeting with one.

Now go for it!
Once you've done all that, it is back to the basics of home finding, make sure the lights work, the water runs, and all that good stuff. Remember too that you will be responsible for everything in the home so be prepared. Though look at it this way, there won't be any landlord to complain about or lousy tenants you have to deal with. It will be you and your privacy in your very own home. Home ownership is a great prize that everyone should get the chance to experience or at least try. Now that you know the basics of trying to achieve the American Dream, now it's time for you to go out and chase it.

Make sure that you know what you want and do a lot of research on it.

I'm pretty sure you've been around in this business for quite of time now, thanks for sharing this wonderful info, 

As a homebuyer, there might be some things you need to keep in mind when buying a home. One should really be careful in choosing and buying a home since it can be a great long term investment. These are great tips. Thanks for sharing.