s a first time homebuyer, take a deep breath and realize that although this is going to be a time consuming and emotional process, it will also be educational, fun, and most of all, a great investment in your future.

Don't forget to remember that you are the most important person in the entire process.  It's easy to think that everyone involved (the seller, lender, agent, etc.) carries more weight than you.  But the truth is that you, the buyer, are the one person in this transaction who makes it all happen.

Take some time and read through the following tips to help you get started.  Also, don't forget to visit our Buyers Resource area to gather additional information and our Finance Information area where you will find calculators you can use to understand how much home you can afford, questions to ask your lender, a loan application checklist, and tips about mortgages and finances in general.  

                
               

1. Tax breaks - The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, as well as some of the costs involved in buying your home.

2. Gains - Over past five years national home prices have increased at an average of 5.4% annually.  And while there’s no guarantee of appreciation, the typical homeowner has approximately $50,000 of unrealized gain in a home.

3. Equity - Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings - Building equity in your home is a ready-made savings plan.  And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability - Unlike rent, your mortgage payments don't go up over the years so your housing costs may actually decline as you own the home longer.  However, keep in mind that property taxes and insurance costs will rise.

6. Freedom - The home is yours.  You can decorate any way you want and be able to benefit from your investment for as long as you own the home.

7. Stability - Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

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1. Don't wait to get a loan.  Talk to a lender and get PreApproved for a mortgage before you start looking, so you know how much home you can afford. Don't forget to add in the cost of property taxes, insurance and association fees, if applicable.

2. Get your finances in order.  Be sure you have enough money to cover your downpayment and your closing costs

3. Do your homework before you start looking.  Decide specifically what features you want in a home and then prioritize those features.  Also, narrow down your neighborhood search.

4. Be picky, but don't be unrealistic.  There is no perfect home.

5. Don't ask too many people for opinions.  It will drive you crazy.  Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move.  When is your lease up?  Are you allowed to sublet?

7. Think long-term.  Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer?  This decision may dictate what type of home you'll buy as well as type of mortgage terms that suit you best.

8. Don't let yourself be "house poor".  If you max yourself out to buy the biggest home you can afford, you'll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don't be naïve.  Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.

10. Get help. Hire a REALTOR® as a buyer's representative.  Unlike the listing agent, whose first duty is to the seller, a buyer's representative is working only for you.  And most often, buyer's reps are paid out by the seller's commission, so the services are free to you.

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1. Not asking enough questions of the lender and missing out on the best deal.

2. Not acting quickly enough to make a decision and someone else buys the house.

3. Not finding the right agent whose willing to help through the entire homebuying process.

4. Not doing enough to make the offer look good to the seller.

5. Not thinking about resale before buying.  Though resale may be the last thing on your mind, understand that the average first-time buyer only stays in a home for four years.

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1. Find a real estate agent that's simpatico.  Homebuying is not only a big financial commitment, but also an emotional one.  It's critical that the agent you chose is both skilled and a good fit with your personality.

2. Remember, there's no "right" time to buy, any more than there's a right time to sell.  If you find a home now, don't try to second-guess the interest rates or the housing market by waiting.  Changes don't usually occur fast enough to make that much difference in price, and a good home won't stay on the market long.

3. Don't ask for too many opinions.  It's natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.

4. Accept that no house is ever perfect.  Focus in on the things that are most important to you and let the minor ones go.

5. Don't try to be a killer negotiator.  Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price may lose you the home you love.  It is always a good idea to leave all negotiations to your Realtor.

6. Remember your home doesn't exist in a vacuum.  Don't get so caught up in the physical aspects of the house itself (room size, kitchen, etc.) that you forget such issues as amenities, noise level, etc., that have a big impact on what it's like to live in your new home.

7. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving.  Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post home buying budget.  Even if you buy a new home, there will be some costs.  Don't leave yourself short and let your home deteriorate.

9. Accept that a little buyer's remorse is inevitable and will usually pass.  Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.

10. Choose a home first because you love it, then think about appreciation.  While U.S. homes have appreciated an average of 5.4 percent annually over the past few years, a home's most important role is as a comfortable, safe place to live.

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