Buying your first home is a major decision. You will want to start by visiting a local lender to pre-qualify and establish your maximum loan amount. This amount, along with the cash you can offer as a down payment will determine the price range in which you should look. You can begin shopping by researching community features you want and need, remembering that "location-location-location" can be as important as the home itself.

As a first-time buyer, professional real estate assistance can be crucial, and you should insist that the agent work with you as a "buyer's agent" in order to be your advocate in the transaction. In most cases, this agent is still paid out of the seller's commission paid at closing, so you will not pay extra to be represented by a good agent. See the suggestions in Tips For the RELOcating Homeowner regarding selection of a qualified agent; you do not have to be moving from one city to another to take advantage of these suggestions.

When shopping for a mortgage, look at the overall cost, not just the interest rate. Generally speaking, the higher the rate, the lower the number of points charged. Make sure you understand any hidden costs or special early payment penalties which could create problems for you. Look at different mortgage products, such as shorter-term fixed-rate loans or adjustable rate loans, but be sure you understand what your "worst case scenario" is if interest rates rise.

Once you have settled on a community and seen several homes, you will make an offer on a home you like. If you and the seller, with the negotiating help of your agent, come to terms and you execute a sales contract, you will then finalize your mortgage. The mortgage company will require a home inspection and a title search. You may have to coordinate your closing date based on when the seller can purchase another home and vacate.