A guide to buying your first home

Many people dream of one day leaving the hassle of renting behind and joining the ranks of proud homeowners.

Choosing a home isn't an easy process and requires extensive thought and preparations. A person wants to not only receive the best home for their money, but the best loans and interest rates as well.

Everything should start with identifying what the person needs in a home, such as number of bedrooms, amenities, location and pricing.

This can narrow down the search and keep people from visiting homes that don't have what they want, or are beyond their price ranges.

Deciding on an optimum price level can be difficult, because you are taking into account not only the price of the home, but also the amount of interest on the loan and the down payment.

A mortgage calculator can help create an estimated monthly payment based on the loan amount and expected interest rate.

Armed with this information, there are two choices available. You can begin the house hunt right away, or visit banks to inquire about how much you will be able to borrow and be pre-approved for a loan.

The advantage of pre-approval is you already know your limit. You don't have to choose that particular company, because you obviously want the best loans, but it gives you an idea of what level of financing you will qualify for. This step is completely optional, but a good idea for first-time home buyers.

A realtor can help gather a list of homes that match your needs and arrange for you to see them. It's important to have a realtor or current homeowners available to ask questions about structure, age, renovations and other factors.

This is an important decision, so it is important to visit many homes and make an informed decision. This is a major investment and you want to be happy with your choice.

Once the perfect home is found, it is time to think about getting a good interest rate. If you were pre-approved for a loan, revisit the bank to get concrete numbers on the interest and ask if it is a variable or fixed rate mortgage.

Also, set the length of the loan. Mortgages can extend out 30 years, but that means more interest.

It is important to shop around for a home loan and simply not pick the first lender that approves you. One bank may approve you at a different interest rate or have more loan options than another bank. This is the key to getting the best loans.

If you take the time to examine all your options, then the home you pick and loan you choose should be the best you can get.

It may take weeks or months to find a home, but don't get hurried and be pushed around by overzealous realtors. You may end up losing one home you liked because of being cautious, but this is not a decision to be made lightly.

There is no reason why you can't find a great home and receive the best loans for it. It just takes a little careful planning and patience.

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