Getting ready to buy a home can be both a very exciting, yet a very terrifying experience. Most first time homebuyers have so many questions to ask, but they are unsure of who to ask. Who can a first time homebuyer trust and what can they do to insure a smooth homebuying experience? 

First time homebuyers occupy a very large percentage of the real estate market. With a quickly changing real estate market, rising interest rates and tightened lending guidelines first time homebuyers can be even more confused than ever about buying their first home. The good news is that I am going to touch on a few of the common mistakes to avoid when you are buying your first home. These tips should provide some assistance with the homebuying process and hopefully help to insure a more enjoyable homebuying experience.

Buying More Home Than You Can Afford -  This may be one of the single most common mistakes that a first time homebuyer can make. I know, the lender approved you for this much of a mortgage so you just had to take advantage of the full pre-approved amount. You and your spouse need to sit down together, before you even begin looking at houses or getting pre-approved by mortgage professionals, and figure out a very detailed and accurate budget. Figure out everything, including vacation money, holiday spending money, investment money, savings account funds, etc... and whatever is left over is the amount that you have left for a monthly mortgage payment. Remember you want to try and be able to maintain a similar lifestyle owning a home as to what you are living now. A mortgage lender is going to approve you for a mortgage based on how much money you make compared to how much debt you have on your credit report. A mortgage company will not care about how much money you invest each month, how much money you spend on your cell phone bill, how much money you pay a relative for a family member loan, how much your utilities are, how much you need to pay for food each and every month, how many vacations you go on each year, etc... These items do not show up on a credit report and unfortunately are not normally factored into your qualifying ratios. Therefore, you may end up being approved for a mortgage that is much more expensive than you might feel comfortable paying on. Do not get caught in the trap of buying more home than you can afford and live comfortably. Just because you are approved for more does not mean you need to buy a home for this maximum amount.

Buying A Home With Your Heart and Not Your Head - Be patient when looking to buy your first home. Your first home can be a starter home and does not need to be a "castle." Do not allow yourselves to become to emotionally attached to a home and stretch yourself to thin by buying with your heart. Do not allow yourself to buy a home that has a lot of what you want but little of what you really need. What I mean by this is to not allow yourself to sacrifice a 2nd bathroom even though you have 2 teenage daughters for a hot tub that you want. Be smart about buying your home and make sure it has everything that you need in a home and you can always add what you want in the future.

Not Getting A Home Inspection - While saving the cost of a couple hundred dollars may sound like a good idea when you are realizing how expensive it can be to buy a home, do not get cheap and avoid paying for a home inspection. Especially if the home is a little older, the couple hundred dollars spent on a home inspection can save you thousands and maybe even tens of thousands of dollars or more in the long run. Many first time homebuyers try to "cut corners" in terms of the costs of buying a home, but a home inspection is not usually one of the areas that you want to try to cut costs at. 

Therefore, as a first time homebuyer, make sure you buy a home that is within your budget and not your lenders budget. Buy a home that has everything that you need it to have and do not skip the items you need for amenities that are simply desired, but not necessary. Finally, get your home inspected, especially if the home is slightly older as this can possibly save you many thousands of dollars in the long run. Follow these 3 helpful homebuying tips for first time homebuyers and you will be that much more prepared to buy your first home. For more mistakes to avoid please visit: http://www.themortgageu.com/mortgage/new_home_buyer_mistakes.htm