Beginners Guide to Purchasing Your First House

Purchasing your first home can be a very scary thing, particularly if you don't' know or even understand the process. I remember when I purchased my first home I had not a clue as to what to do or how to do it. Although, I thought I did okay at the time, over the years I discovered that I could have done much better if I did a little research.

In today's unstable economy and rising interest rates, it's even more important than ever that we do our homework before we venture out into the world of Real Estate ownership. There are Real Estate professionals who are available to aid you in your quest for home ownership, but it's better that you know the process yourself.

The following guide will give you basic information on what to do before you purchase your first home.

1. Know your Credit Score - First things first. Before you think about searching for your first home, you must know where you stand credit wise. Credit will either help you or harm you in negotiating the purchase of a home. Order your credit report and credit scores from the major credit bureaus, this will give you an overall idea of what kind of interest rate you can command when applying for a home loan.

2. Review your Financial Picture - You must know how much house you can purchase based on where you are financially. Although there are 97% and 100% loans available, this does not mean that it is a good loan for everyone. Depending on what kind of property you purchase and where you purchase it; it may take more than 5 years for your property value to increase in order for you to refinance and get ride of that 100% loan.

3. Get some Help - Once you understand you credit standing and get a handle on your financial situation, look for a professional realtor and banking expert. A seasoned real estate agent will have the experience and resources in order to find you exactly what you're looking for. The same is true with a professional banker, who will be able to put together a choice of financing options for you. In the 21^st century, there is no such thing as one choice and anyone that says you don't have but one choice, keep it moving and find another financial professional immediately.

4. Take your time - Unless there is an urgent need for you to find a home, take your time to make sure you are buying something that you love and you'll be happy with for a season. Five years ago, I purchased a home that I liked, but didn't love and I regretted it because I moved out 2 years later and lost a lot of money as a result. So, plan ahead and find a home you really love; a place where you come home everyday and can say "Awwh, home sweet home".

5. Negotiate - For some reason, people seem to think that they have to take any offer that's presented to them. Wrong! Buying a home is a major purchase and it's your right to negotiate a deal that suites you, not the seller. In today's housing market, there is a house for sale on every corner, so as a buyer, you have the power. Don't get me wrong, the seller or builder doesn't have to take your offer, but at least know that you can negotiate.

This guide is designed to give you the tools you will need in order to get started so Happy Hunting and Shop Wisely!