You might be surprised to know that just because you are a first time home buyer, it doesn't mean that you can't be choosy. When you are planning to purchase a home for the first time your very first step should be to, make a list of the criteria of utmost importance and then, do your best to adhere to your list. Often, first-time homebuyers are tempted to place an offer on the first home or condo that they see, but this impulse should be avoided at all costs. Giving yourself the opportunity to look around and compare options and pricing will ensure that you can find the right place for you.

First time home buying can be extremely stressful, however if you prepare yourself with a good mortgage, a good real estate agent and a list of what is important to you and what you are willing to compromise, you'll find a starter dream home that really "fits the bill".

If you are ready to start your first time home buying process, it is important that you educate yourself on all of your options and don't just depend on the advice of others (non-professionals) . For instance, did you know that first-time home buyers are often entitled to special government funded mortgage programs that have low interest rates and low down payments? Equipping yourself with that kind of knowledge, will be invaluable as you try to take advantage of all the options that are available to you.

It is recommended that you get a mortgage pre-approval before you go house hunting. Many sellers today demand a pre-approval letter before they will accept your offer. Pre-approval also gives a first-time homebuyer a realistic idea of what they can afford to buy.

When buying a home for the first time, a mortgage can seem like a daunting thing that you don't understand. Here is some basic mortgage terminology that you need to know in order to make an informed decision.

Are you still renting because you think you can't get a mortgage as a first-time home buyer? If so, I would really encourage you to find a mortgage broker online or locally to consult with. The fact is that there are many mortgage options out there for people with no credit, slow credit and even...bad credit. The best thing about mortgage brokers is that they will coach you on what you need to do to get into a better position if you need to. Additionally, they will work harder to find you better programs if you prove your loyalty to them. When you talk to your mortgage broker you need to ask what kinds of programs you qualify for. They will get your credit score and analyze your financial data to assess what you can get and what you can afford.

Take this information to your real estate agent and begin your search only looking at the properties you can really afford.

Are you concerned about coming up with a down payment as a first-time homebuyer? There are many programs, organizations and businesses out there that are specifically designed to help with down payment options for first-time homebuyers. Several programs require little or no money down. Even the Federal Government allows for a one time withdrawal, up to $10,000, from an IRA or retirement account with no penalty for first-time home buying?

The bottom line is that, because there are so many mortgage options available, you can probably find the down payment program that you are looking for. However, if you want help in locating and narrowing down your choices, it will be very important for you to develop a relationship with a mortgage broker. Not only can they help you find the right first time homebuyer program for you, but they also will explain all of your options thoroughly.

Make the most of your first time home buying experience by taking the time to learn about your neighborhood. Find out about schools, about average home values, about the increase in those home values over the last five years. Assess crime rates and try to find out if anything significant is happening in terms of home or town development that will increase your home's value into the future. Take the time to learn about mortgage programs. Learn about your options as a first time homebuyer and equip yourself with information for the future. Finally, take this time to develop relationships with a real estate agent and mortgage brokers. By establishing these relationships as a first-time home buyer, you'll be able to navigate that much more easily through any future real estate transactions.

Real Estate Agents have the professional knowledge and experience to find you the home you've always dreamed of. Don't end up settling for a home that you can simply tolerate. Here are some basic reasons why I recommend using a real estate agent as a first-time homebuyer:

• Negotiation Skills - Great real estate agents know how to negotiate. They represent their clients in negotiating the cost of the home, anything that needs to be addressed after the home inspection, closing details and more. They have an impact on every aspect of the home buying process. While there is a commission fee involved when using a real estate agent or REALTOR® you often save thousands of dollars in other costs (future repairs on the home - issues caught in the inspection process, lower home pricing - negotiated by the real estate agent, time away from work (taking care of transaction details), etc. Relying on the expertise of a real estate agent can be a huge cost and time savings for you.
• Experience - Looking for a home and getting through the closing process the first time can be incredibly intimidating. Real estate agents have the experience to guide you through this process. They have specific knowledge of the neighborhoods, homes or condos on the market and new properties coming on the market. By tapping into the resources and experience of a real estate agent, you will have access to information that may not otherwise be available to you as an individual buyer. It pays to have someone "in the know" on your side.
• Home Buying Network - Your real estate agent will have contacts to help with every aspect of the home buying process. When buying a home, you oftentimes will need to find a reliable home inspector, a closing attorney or agent, a seller's attorney, an appraiser or a mortgage broker. An experienced real estate agent will have contacts in all of these areas. You may find better mortgage rates online, but it doesn't hurt to explore all of your options and tap your real estate agent's network.

Here are a couple of tips and guidelines on what to look for in a mortgage program:

1. Flexibility - Make sure you get a program that offers a monthly payment you can really afford. Be honest with your mortgage broker if your payment seems out of reach. They may be able to suggest a three or five year ARM mortgage with a lower interest rate and lower payments or an interest only loan to get you into your home without giant mortgage payments. *
2. Building Better Credit - If your credit isn't perfect, your mortgage broker can probably find you a program that will help you build you credit up. The payments may be flexible and as you make more payments on time, your interest rate may even drop! *
3. Long Term Goal - Are you planning on staying in this home forever, for three years, for five years? Communicate your goals to your lender because in situations like these they may have several mortgage options from which you can choose. *

As a first-time home buyer, you can't always get the best rate. Maybe you didn't have twenty percent to put down or maybe your credit needed a little rebuilding. If you've been in the house for a few years now and you've built up some equity, it may be time to refinance and get a better rate.

Refinancing your first home mortgage is very easy and painless, especially if you use your regular mortgage broker. The process still requires an application, a home appraisal and some of the same financial documents you needed to provide for your first time home buying, but the processing and closing should be faster and this time there is no seller involved to slow the process.

Speak with your mortgage broker about first home mortgage refinancing options. You'll probably save some money and maybe you can pull out some equity and fix that master bathroom!

Interest only mortgages are gaining popularity with first time home buyers. The reason for this is that interest only mortgages offer great flexibility in terms of payments for the first several years of the loan.

When you pay for your interest only loan, you are actually only making payments on the interest of your loan, so the payment is substantially lower. You can make payments towards the principle if you can, but you aren't required to.

Be careful if you choose an interest only loan. Don't get into more house than you can realistically afford. Make sure you understand the loan schedule so you aren't caught unawares when you have to begin paying towards the principle as well.

Don't be tempted into excess when first time home buying. A real estate agent may show you a condo or home that is really more than you can afford and you need to be strong and stay within your budget. Here are a few tips on making sure you buy a home you can really afford to live in:

How do you know what can you really afford? Work backwards. Look at what you are paying in rent. Can you afford to pay more? Do you need to pay less? Consider that a mortgage payment will also include taxes, then assess the monthly payment from there.

Where do you want to live? You may not get exactly what you want as a first time home buyer, but you should be armed with knowledge about neighborhoods, school districts or any other factors that are important to you.

Don't get in over your head. Don't get a mortgage that is too large, has a high interest rate or that has a prepayment penalty if you can avoid it. Bad mortgages can make life much more complicated. Make sure you are using a reputable mortgage broker and you should be safe.