What is the Process?

• You should understand the overall process of buying a house before you start calling around. The first step is to determine how much house you can afford -- online calculators provide you with this figure based on your income and other details. The next step is to get a pre-qualification for a mortgage loan from a lender or broker, which says you're eligible for a mortgage loan. Secure a real estate agent and start shopping for homes. Once you find a house you want and make a sales agreement with a seller, you proceed with the mortgage application process to close the loan. Your real estate agent and lender will help guide you through each step.
  
  

Do You Need a Realtor?

• You're not required to hire a real estate agent to purchase a home, but understand that it can be very difficult to buy a house without representation by a professional. A real estate agent usually has a familiarity with the real estate market in your area that you may not. An agent knows the home buying process and can handle most if not all details once you've chosen a house you want. If you do choose to try to buy a house yourself as a first-time buyer, you could run into a number of obstacles and confusion along the way that you don't know how to handle. Consider hiring an agent at least for the first time you buy a house so you can get familiar with the process.
  
  

First-Time Home Buyer Programs?

• Some municipalities and states offer special programs and funding to first-time home buyers. First-time home buyer programs help you learn about being a homeowner and help you save toward your down payment. Some programs even match your savings so that you can buy the home sooner. Take advantage of any local programs in your area -- if available, start participating in the program at least a year before you plan to buy.
  
  

Required Financial Profile?

• Before you apply for a mortgage, determine whether you meet the basic financial requirements. Requirements vary by lender and change over time, but generally you need a credit score of at least 620 to qualify for a Federal Housing Administration (FHA) mortgage loan and 660 for a standard loan. You should ideally have a score of more than 700 if you want the best rates. Determine whether your total debt (including the amount you want to pay on your mortgage each month) exceeds 36 percent of your income. You also need a down payment of up to 20 percent of the sales price (varies by lender).