1. Go shopping for a loan: Be sure to check with at least three different lenders. Don’t get into a loan unless you are comfortable with sticking with the terms for at least 3 years. Also, be sure to compare the same types of loans between lenders so you are getting good comparisons.
2. Create a budget: Setting up a budget will allow you to see what you can realistically afford each month. Set up a budget and then stick to it. Eliminate or pay down credit cards, students loans, and car loans if possible before obtaining a mortgage.
3. Don’t procrastinate: Don’t wait until right before you need to move to start the mortgage process. Look around to find the best loan for you and research all options available for first time home buyers. If you don’t have a lot of cash for a down payment, there are plenty of ways to make the costs of buying a home more affordable.
4. Create realistic expectations: Speak with your partner about what items are absolutely essential to both of you in a home and what you might be willing to do without. This will make the home search easier when you can identify must have’s in a home.
5. Detect any issues: It’s extremely important to hire a licensed home inspector to evaluate a home before you buy. It will be priceless to know that there are no major issues with the home before the big purchase.