Accidentally drop the phone in a pool, left it out to dry for a few days, turn it back on and everything was okay except, the home button does not work and the screen sometimes dims itself, if I turn off auto brightness, its fine. The wierd thing about the home button was that I was able to get into recovery mode, but pressing the home button while using the phone does not work? Is this a software issue? any solution?

have you tried to dry the battery after picking your iPhone from water?