There are several things one must consider before purchasing their first home. One, they must decide if it's in their best interest to buy or rent. Many time people think renting is just throwing money away that could be used on a home. During bad economic times the value of homes could be less than the balance left on their mortgage. When that happens, renting seems like a better option. First time home buyers should consider the down payment, closing costs, insurance, property tax, maintenance and the monthly payment on the mortgage and compare that to the cost of renting.

One must consider geographical location. Some areas it's better to rent than to own when the price to rent ratio of the homes is high. Also keep an eye for foreclosurers and short sales, which you might find some discounts. A foreclosure is when one defaults on the loan and the bank then owns the property and sells it at a discount. A short sale is when the owner tries to sell the home for less than what is left on the loan to avoid a foreclosure.The latter is a last-ditch effort by a homeowner facing foreclosure to sell her home for less than is left on her loan. Quicken Loans are good for first time home buyers that are looking for a good deal.

A first time home buyer must be aware that housing costs shouldn't be more then 25% of the household income. They must also make sure they get pre approved for a mortgage.

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First time home buyers often make wrongful decisions when it comes to purchasing a house, some of this maybe about selecting the right kind of mortgage, setting aside funds for renovations and having paid a much larger amount than what is necessary.

In order to avoid such costly decisions, one of the best way is to deal with a lender that has a proven track record and integrity, coupled with the buyers desire to provide funds for such an undertaking.

As a first time home buyer, your initial step should be to determine first your monthly housing expense prior to dealing with your lender. The next step would be to schedule an appointment to the lender for an initial discussion and ascertain your qualification on the type of mortgage you are applying. Undergoing the initial steps would be very helpful in order to detect some mistakes on your credit report.

Furthermore, it is also advisable to maintain a high credit score on your FICO because this would affect your interest payments on your mortgage. "A credit score of 720 or above will earn you the best rates and can potentially save you thousands of dollars.

A score of 680 to 720 can get you good mortgage rates, while a FICO score of 620 is usually about the lowest score to qualify for most loans"

Hi @ginamichellesattic, one of the biggest mistakes that close friends of mine have made , is buying a house just because the price was ‘’just right’’. At the end of the revocations, they realized they had even spent more than they have budgeted for the house.
Here are some things a person should know or do before buying a house:

*The first thing is to be sure of what you really want and what price you are willing to pay to get it. Write down the things you expect from a house and the things that you would not want. Decide on the kind of neighborhood you want to live in

*Decide how you are going to pay for the house. Do you want to buy it with your own money or you need a little assistance from financial homes? Whatever the case may be, get your finance in order and go for your house hunt.

*When searching for a house, consider the value of the house. If possible, get a professional (buyers’ broker) to help you evaluate the house. You need to buy a house will appreciate in value over time. So if you decide to sell the house in the future, you would get a better offer for it.

*Make inquiries about the house you plan to buy and explore the neighborhood at different times of the day. You can also ask questions about your closest would-be-neighbors and about the local amenities and services.

*It is always better to buy from people you trust. You can ask your friends and relatives for referrals.

*A new buyer should know that during the negotiation process, he can walk. He is not obligated in anyway and can continue with his search.
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Hi @ginamichellesattic! Buying a how is without a doubt one of the biggest financial commitment most people want to take the risk. This decision should not be taken light and you as a buyer should fully understand what is involved and be totally committed to the home purchase.

These are some guidelines that I hope will help you find the right one for you:

1. Begin with a bond originator so that you will know exactly how much loan you can avail.

2. Think about your expenses every month like cost of running the home and decide the amount of mortgage you can afford. This is important because there are some hidden costs when buying a house like a deposit of 15% or more of the house's value.

3. Focus on the kind of house you want and need and take into consideration your family and lifestyle. Location is very important because the area needs to be safe, close to your work as well as to markets, schools and physicians.

4. When you go house hunting be prepared and bring a camera with you so that you can take pictures of the house you visit that are on sale and you will be able to compare the different houses you checked. Have a pen and paper handy to not down pertinent information of the homes you visited. Compare each house carefully like the lot size, features, design, surrounding areas and etc.

5. Home Mortgage is the final step in getting the home you want. Be sure to learn about all the possibilities like the interest rates. Ring the consultant for bank loans so that you will know if you qualify for mortgage.