Buying your first home is down right scary for most people. Your facing the unknown in most cases. Terms you don’t know…payments your not sure of…and I wont even mention the contracts to sign. Some studies show that some people are so over come with anxiety that they wont take the first steps to even buying a home.

Usually, your home will be the biggest purchase you will ever make. And if it is your first time, this purchase is even more intimidating because you are taking full responsibility upon yourself. You should try and take advantage of the wealth of home buying information and programs out there.

Do some research and be fully informed before beginning your search for a home. Here are the six steps you should take before buying:

1) Before you start your house search, think carefully about what it will be like to be a homeowner. For most people, home ownership is the American dream and the advantages (tax benefits, sense of home, financial investment) far out weigh any drawbacks.

2) Have an idea about your credit right from the start. Your FICO score will normally be between 400 and 850. the higher the score the better your funding chances are. Get a copy of your credit report and review it. Look for any discrepencies and report them to the agency. In some cases you may want to use a credit repair agency.

3) Know your finances. A down payment is a big barrier to homeownership. There are, however, many different loans/mortgages out there that offer low down payment options. You should work with a quality mortgage broker or banker to find out what would work best for your situation. And don’t forget the government…a HUD loan is usually a great way to get into your first home also. Again, check with your broker or banker for more specifics.

4) Get pre-approved…NOT pre-qualified. Here is the diffrence. Pre-approval means you have already given a broker or your bank all the information they want in order to actually run your credit and financies in order to see what loan you can get and how much you can actually spend on a home. Pre-qualified means some one looked at your credit application and THINKS they can get you a loan.

5) Look into down payment assistance programs. While meeting with your mortgage broker or banker, have them look into any down payment assistance programs that may be available. They should have an idea of what would be available to you. There are many programs out there run by counties and cities and other governmental agencies. The trick is to know about them, first, and then to see if you qualify for them.

6) Look into first-time home buyer classes. Many lenders and Realtors offer home buyer education classes. They are usually 2 to 4 hours long and will walk you through the process of applying for a loan, working with a Realtor, making an offer, going to escrow (closing), and various other responsibilities associated with owning your own home. And realize that whoever is putting on the class is will also try and sell you on their services, which is fine, but you are under no obligation to use them.

These six steps will help you on your path to owning a home. Just remember to ask LOTS of questions. Talk to friends and family who are home owners and see who they trust. Buying a home doesnt have to be scary as long as you understand what your getting into.

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