Buying a home, especially if it’s your first one, is often quite scary. There are so many things you don’t know and terms you’ve never heard before. People often fear what they don’t understand. In fact, studies have shown that this fear literally prevents some people from taking the first steps to buying a home.

For most people buying a home is the largest financial purchase they will make. If it is your first time be sure to take advantage of all the program information and home buying programs you can.

Be sure to prepare yourself before buying. Here are six steps to follow before buying:

1) For most people, home ownership is an integral part of the American dream and the advantages (tax benefits, sense of home, financial investment) far out weigh any drawbacks.Think about what it will be like to be a homeowner.

2) Have an idea about your credit right from the start. Your FICO score will normally be between 400 and 850. the higher the score the better your funding chances are. Get a copy of your credit report and review it. Look for any discrepencies and report them to the agency. In some cases you may want to use a credit repair agency.

3) Understand exactly what your finances are. For most homebuyers the two most feared words are: DOWN PAYMENT. Today, there are so many diffrent types of loans available that this shouldnt be as much a worry as it was, say ten years ago. a good loan officer or mortgage broker should be able to walk you through the process and stear you clear of the programs to avoid.

4) Get pre-approved…NOT pre-qualified. Here is the diffrence. Pre-approval means you have already given a broker or your bank all the information they want in order to actually run your credit and financies in order to see what loan you can get and how much you can actually spend on a home. Pre-qualified means some one looked at your credit application and THINKS they can get you a loan.

5) While meeting with your mortgage broker or banker, have them look into any down payment assistance programs that may be available. They should have an idea of what would be available to you. There are many programs out there run by counties and cities and other governmental agencies. The trick is to know about them, first, and then to see if you qualify for them.

6) First-time home buyer classes. Many lenders and Realtors offer home buyer education classes. They are usually a few hours long and will educate you through the process of buying a home. From applying for a loan, working with a Realtor, making an offer, going to escrow (closing), and various other responsibilities associated with owning your own home.

By following these six steps you’ll be well on your way to homeownership! Remember, ask lots of questions and make sure you understand exactly what is happening. Always try to get referrals from people you trust. Good luck.