"Being a first time home buyer can be both an exhilarating and frightening experience all at the same time. After all, you have probably long dreamed of the day when you would buy your first home. At the same time, purchasing a home is a major commitment that involves spending a great deal of money. Therefore, you want to make sure the purchase you make is a wise one.



In order to make sure your home buying experience is a pleasant one that results in a satisfying purchase, there are several things you need to do. These include:

? Do your homework beforehand

? Hire an agent that represents you

? Don't overextend your budget

If you follow these three rules of thumb, you should find a great house that you can call home while also investing in a piece of real estate that will result in a nice profit when it comes time to sell.

Do Your Homework Beforehand

Doing your homework beforehand mostly involves looking at different house designs and getting a clearer idea of the type of home you would like to buy. Are there certain features that you absolutely must have in the home that you buy? Are you willing to buy a fixer upper that you can change into your dream home over the next several years? Are you more interested in finding a place you can call ?home? or in a piece of real estate that will dramatically increase in value over the next several years?

Don't forget to also do research on the neighborhoods you are considering moving to. Factors you need to consider include the crime rate, the school systems, the proximity of conveniences such as stores and gas stations, and the quality of the property in the area.

Having a clear idea of the type of home you are looking to buy will help to narrow your focus when it comes time to make the purchase. Don't be afraid to call a broker to show you several different houses, either. Just keep in mind that the realtor the broker assigns to you is representing the seller. Therefore, you should only work with this agent to help you look at different pieces of real estate so you can get a better idea of what you are looking for.

Hire an Agent that Represents You

Once you have utilized the services of a realtor to help you look at different houses and determine the type of property you are looking for, it is time to hire an agent to represent you. With a buyer's agent, you can be certain the realtor is looking out for your best interest rather than trying to close a sale for the seller. In this way, you can rest assured that the agent will be straightforward with you about the pros and cons of the real estate you are considering purchasing.

Don't Overextend Your Budget

The amount of money you can afford to spend on your home will depend on a number of factors. Thankfully, there are several mortgage calculators online that will help you determine how much you can expect to pay each month toward your home depending on how much the home will cost. So, sit down and take a look at your monthly expenses in order to determine how much money you have left over to pay toward your home. Then, play around with the calculators to determine how much the total cost of the home can be while still fitting within your budget.

Keep in mind that you do not want all of your leftover money to go toward a house payment. After all, you will need extra cash to go toward unexpected expenses as well as toward entertainment and other every day expenses. A genera rule of thumb is to keep all of your debts at less than 45% of your total gross income per month. Therefore, you can follow these steps to give you an idea of how much you can afford per month:

1. Multiply your monthly gross income by 0.45

2. Subtract all of your debt payments from the resulting figure

3. Use this amount as a guideline for how much you can spend each month toward your home purchase

By staying within your budget when you buy your home, you won't have to worry about the possibility of losing the home you always dreamed of having. Similarly, by hiring a buyer's agent and doing your homework ahead of time, you will be certain to be pleased with your purchase for years to come."