If you have decided to purchase your first home, you probably know that there are a good number of bargains to be found at the current time. Even so, as a first time home buyer, there are still a few things you should keep in mind in order to make sure that you really do find a good deal and also that you do not get in over your head.

First, keep in mind that when you are looking for a lender, it is always a good idea to look for a traditional lending team. What you should know is that this means you should have 20% saved for the down payment on your future home. Also, keep in mind that you should not plan to spend more than 35% of your pre-tax earnings on your mortgage, including your property taxes and home insurance. This is crucially important in the current market due to the fact that most lenders have become much more wary about making loans than in the past due to lending restrictions.

It is always important to get your financial in order before you begin shopping for a home. Ultimately, it should be your income that should guide you final decision, not whether you fell in love with a home before you knew what you could afford to spend. While you may think that you will be able to afford a more expensive mortgage later on, you should not count on it because that can easily get you into financial trouble.

There are numerous unknowns that can become involved when purchasing a home as a first time homebuyers. For example, consider the fact that while you may be able to easily afford a home right now because both spouses are working, what would happen if one of you could no longer work due to a layoff or medical problem? Do not place yourself in a situation where you are so close on the mortgage that if something should happen your mortgage would suddenly become unaffordable.

It is also important for you to make sure that you budget for various housing expenses as well. This is one area where many new homebuyers fall short. Keep in mind that when it comes to maintenance you should plan on spending nearly 4% of your home's original purchase price. If it's an older home, plan to spend around 5%. One way to handle home expenses is to make sure that you keep your mortgage low and do not pay near the upper range of what you can afford. Also, set up a special emergency account to cover expenses that may pop up at the last moment. One thing you will learn as a homeowner is that appliances and other things tend to break at the moment when it is least convenient or affordable for you. Preparing ahead of time can help to lessen some of the financial shock.

At one time many homebuyers purchased a home and then were ready to upgrade within just a few years. Today, it may be a better idea to plan to remain in the home for a longer period of time; at least five years. When you stay in the home longer, it allows you to avoid some of the transaction costs that can be involved in selling your home and then buying another home and moving all over again. These savings can amount to thousands of dollars.

Remember that before you begin shopping for a home, it is always a good idea to check on your own credit and find out where it stands. Far too many first time home buyers are disappointed to find out that they cannot afford to purchase the home they wanted because their credit scores are too low. This is especially true right now with lending guidelines so restricted. While a lower credit score might have been okay just a few years ago, that is not the case right now. You must have a strong credit profile and higher credit score to qualify for a loan with a lower interest rate right now. Otherwise, you might find yourself being denied a mortgage loan or facing a higher interest rate that can drive your monthly payments up. Along the same lines, make sure you avoid making any large purchases leading up to the time that you want to buy a home as well as after you have been approved for a mortgage.

Keeping these tips in mind can help you to make your dream of home ownership come true.