Getting into your first house is a scary deal for most of us. terms we don’t understand, contracts written in legalese that we cant figure out…and lets not even talk about financing guidelines. Some people wont buy a home just out of the fear of the unknown.

For most people buying a home is the largest financial purchase they will make. If it is your first time be sure to take advantage of all the program information and home buying programs you can.

To prepare, 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) Know your credit score from the start. If you have any bad credit issues, and we all do, be prepared to explain them. If your credit score is really low then you may want to use a credit repair company.

3) Finances. the dreaded down payment is a huge road block for most first time home buyers. However, there are many different types of loan programs out there for little, and in some cases of strong credit, no money down. Your lender/mortgage broker should be able to help you find for the program you best qualify for.

4) Have your mortgage broker pre-approve you..NOT pre-qualify you. a pre-approval is actually a great out line of what you can spend on the house as well as the interest rate you will be looking at. The best part is that you have much more leverage when actually shopping. It tells the seller you are already several steps closer to getting them a check from your bank then someone who is “just looking.”

5) 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, nonprofits, 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.

By following these six steps you’ll be well on your way to homeownership! Remember, ask lots of questions and make sure you understand exactly what is happening. Always try to get referrals from people you trust. Good luck.