What you need to know to buy your first home

Many people have a bit of fear when attempting something for the first time. A good example of this is the purchase of a home. The average consumer knows very little regarding the home purchase process. Between finding the right home, getting it inspected and finding the best financing, it is no wonder that some people are afraid to purchase a home.

To alleviate the stress of buying a home, consider the long term ramifications such as the tax benefits and equity you'll gain through appreciation.

Your first step is to find a mortgage professional that you can trust. That person will be able to preapprove you. The preapproval letter will contain the maximum purchase price, interest rate, contact information of the mortgage professional, and the date of the letter. Most preapprovals are good for 30 days. The preapproval letter is what you will need to show a realtor, before they will show you any houses.

Many first time home buyers are often confused about just what all goes into their monthly payment. Many lenders require escrow accounts to cover annual property taxes and homeowner's insurance. These costs will add to your montly payment and should be considered prior purchasing a home.

When looking to buy your first home you need to know what you want in a home. Do you need a 3 bedroom home because you have a wife and 2 children? Do you need a home that is wheel chair accessible? Do you need 2+ bathrooms because of teenage daughters? You should decide upon what you need out of your house and what functions are absolutely necessary to you and your family when looking for a home. It can be quite costly if you buy a home and then have to add an addition, remodel numerous rooms, add a bathroom, make the home wheel chair accessible, etc... after purchasing because you did not plan properly and buy a home that fit your needs.

Homeowner's insurance and Property taxes should not be overlooked when measuring your goals for homeownership. It will be important to understand these two other important aspects that will affect your monthly payments and overall cost.

» DISCLAIMER: The information contained in this article on 'What you need to know to buy your first home' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.