Buying a home for the first time is a big deal. It’s probably one of the biggest financial decisions you’ll ever make. We’ve created a list of our top tips to help first-time homebuyers get ready for the journey.

Do an Internal Life Check

Are you ready to buy a house? Ask yourself some questions and honestly answer them. Is your job stable? Will you be able to live in it for at least three years? Do you have a savings nest egg that could cover an emergency? If you answer yes to these questions, you may be ready to take the plunge. However, if your job’s in flux, you have no savings, and you’re not sure how long you’ll be in that city or town, holding off your homebuying plans may be the best option.

Save a Down Payment

Many loan programs require a down payment, even the more lenient ones (like FHA loans). Start squirreling away money for your down payment. By stashing as much as you can, you’ll give yourself more mortgage loan options when you begin your purchasing process.

Lay Out a Budget

Dust off the old spreadsheet and list every bill and expense you have, and compare the total against your income. From there, add in the cost of your mortgage loan. Don’t forget to factor in secondary home expenses like homeowner’s association fees, lawn care, and repairs. Play around with the numbers to see how much home you can realistically afford.

Maximize Your Credit Score

Credit scores are crucial elements in getting approved for a mortgage loan. Take care to build yours as high as you can before shopping for a home.

Pay all your bills on time.
Pay down your credit cards.
Don’t close any of your old accounts (you get points for a long credit history).
Don’t apply for any new credit.

You should also pull your credit report at www.annualcreditreport.com. Review every line for errors and, if you find any, dispute them with the bureaus immediately.

Determine Your Must-Haves… Then Shorten the List

Write down a list of everything you want your new place to have. A big kitchen, fenced yard, lots of storage, and a garage may be on your list. Now narrow it down to the top three or four items. The more realistic you are about your must-haves, the easier it’ll be to find a home you’ll be happy living in.

Work With a Savvy Loan Officer

Once you decide to actively pursue homeownership, gather your team of professionals. A helpful loan officer will be priceless in helping realize your homeownership dreams. Find one who is experienced in working with first-time homebuyers and who you’re comfortable with. Your loan officer can look at your finances and explain your mortgage options.

While you’re at it…

Get Pre-Approved for a Loan

Complete an application, authorize your loan officer to pull your credit, and get pre-approved for the amount of mortgage you can qualify for. A pre-approval shows sellers you’re serious about purchasing a home and may give you leverage over other buyers if there are multiple offers.

Find an Experienced Real Estate Agent

Another person who is integral to your homebuying journey is your real estate agent. Find one who knows the area where you want to live and who will help you navigate every step of the process. You should feel comfortable with your agent, they should listen to your must-haves, and they should be willing to answer questions and advise your next actions.

Prepare to Negotiate

In a seller’s market you may encounter tough competition for the home you want. Lean on your real estate agent and stay calm during these situations. Avoid going over your budget just to win the bid. Offer a fair market price and be willing to accept some concessions, but don’t get carried away in negotiating and agree to more than you should pay.

Get a Home Inspection

Once you’ve signed a contract on a home, don’t skip a home inspection. Hiring a professional inspector to look at the property can uncover hidden issues that could be costly to address. Home inspectors ensure you know everything about the shape of the home, even in areas (like the attic and foundation) you can’t see.

Buying your first home is exciting and stressful. By following these tips, you can move through the process easier and find the home you want (and can afford) quicker.

10 Tips for First-Time Homebuyers