One of the inevitable investments almost everyone makes is buying a home. Investing in that one place where you spend most of the years with your family is a dream most people work towards. What that requires most is budgeting. Buying a home requires years of financial planning in advance. You might have to look into the mortgage as well. There are loads you need to look into as first-time home buyers. There are loads of options available today to save and invest in a house. There is also loads to understand before you set out and invest in the house. Since it is an investment you are making for the future, it should be a sound one.

What are the Best Tips for First-time Home Buyers?
Buying a home for the first time is an exciting ordeal. There are several tips that can help you take the plunge while retaining your financial goals.

• Invest in a house only after you are debt free
• Figure out the amount you can spend over the house
• Check if the mortgage is affordable for your income
• Make sure you have a down payment
• Save for additional expenditure you may incur
• Prepare in advance to get your loan approved
• Look for houses within the price range you can afford
• Find the neighborhood that comes within the expenditure
• Take your time, visit open houses and then decide
• Never fail to counter with an offer within your budget from your end
• Prepare yourself to take the plunge

How can you Plan to Buy a House in Advance?
If your long-term plan is to invest in a house, there are loads you can do right now. You can get your finances in order and stay prepared when the time comes.

• If it is a mortgage you are intending to take, make sure you pay all your bills on time, especially the credit card ones.
• Keep an eye on your credit report as a good score can take you a long way when you are planning to buy a house.
• Ensure that you have a financial plan with three tradelines like credit, debit, and student loan.
• Start working on giving in that massive down payment.

What is a Mortgage?
A mortgage is a load that you take from a mortgage lender or a bank to help you buy a house. It is profitable to take a mortgage on roughly 80% of the value of the house while paying the remaining amount up front. The house that you purchase with become the collateral for the money borrowed.

A mortgage payment has four parts.

• Principle
  The amount that you have borrowed to buy the house.
• Interest
  The price that is paid for the money borrowed.
• Taxes
  This is the property tax that homeowners need to pay. It depends on the value of the house.
• Insurance
  This is a mortgage insurance that you need to get in accordance with the lender. If your down payment is below 20% you will have to take this insurance.

What do you Need to Present to get your Mortgage Approved?
While the laws around getting a mortgage are stringent, it is still quite simple for first time home buyers to get one. Before applying for one, there are a few things you need to be aware of financially. This can help you make a timely call about the mortgage.

• Be aware of your income
• Know your expenses, loans and credit card debts
• Your credit history and any issues you’ve had in the past
• The down payment you can immediately present
• The price of the house that is within your budget

What are the Factors that can Help with a Mortgage for First-time Homeowners?
You need to know a couple of things before you apply for a mortgage. It will help you stay one step ahead.

• Be aware of your credit score
• Find out how much you can borrow
• Don’t stretch your finances
• Find the documents required and keep them ready well in advance
• Get a pre-approval over your mortgage
• Check if you are prepared for the down payment
• Be mindful of the closing costs as well, it can be 2-3% of the mortgage
• If your credit history is not great, consider applying for an FHA loan
• Go for mortgage insurance if required

Since you are a first-time home buyer, ensure your first mortgage is at a low rate. You can always place a counter offer as it is best not to accept the first offer placed on the table.