First-time home buyers’ guide

You have decided to embark on the journey of first-time home ownership! Congratulations! But before you bid on your dream home, arm yourself with some basic home buying knowledge. Follow these simple guidelines to be prepared for one of the most important decisions of your life.

Assess your finances. The first and most crucial step to buying a home is understanding how much you can afford. The rule of thumb for first-time buyers is calculating a home price that is two or three times your gross income. You will need to factor in such important variables as homeowner’s insurance, property taxes and maintenance fees. In addition, consider other lifestyle expenses — such as tuition, car payments and travel — that will affect your bottom line.

Get pre-approved for a mortgage. Once you have an idea of the price range you can afford, contact a mortgage company to see if you qualify for a mortgage. Doing this now will help you avoid headaches and heartaches later. By obtaining a pre-qualification letter from a lender, you won’t be committing to a mortgage, but rather you will be showing potential sellers that you can obtain a mortgage and are a serious bidder.

Make a wish list. Once you have an idea of your budget, you can begin exploring neighborhoods that fit your financial and lifestyle needs. You’ll also want to have an idea of the size and type of home you are looking for. Begin exploring various real estate websites to get a broad picture of the options available.

Pick a qualified real estate agent. Now that you have the financial and area parameters in focus, it is important to find the best real estate professional to represent you. Research different firms, read reviews and interview potential candidates before choosing the representative that is right for you.

A little research will make a big difference when you’re ready to make an offer on your very first dream home!