Purchasing a home, especially for the first time, can be quite a daunting experience. The market is flooded with options, and before you know it, you are experiencing a downward spiral into post-retirement mortgages because of an impulse buy. It is best to take the time out to purchase a house that not only fits your criteria, but also doesn’t end up being a financial burden in the long run.

Below are seven tips for first time home buyers that allow this:

1. Pay off all debt
The cost of a house itself is expensive. When you factor in additional expenses like maintenance, Homeowners insurance, taxes, and Homeowners Association fees, that price increases considerably. As such, it is best to have the resources to fund these payments and your mortgage adequately. When you clear your debts, you will be free to use the cash you have left to ensure that owning your house is a stress-free process.

2. Build a down payment
If you are unable to make the full payment on your intended house in one fell swoop and waiting to save the home’s cash price is not on the cards, then I recommend that you save at least 20% for the payment that you will put down on the house to avoid Private Mortgage Insurance. In this, the mortgage charges approximately 1% of the loan every year as a form of coverage if your payments default. The PMI increases your mortgage and does not go towards your principal payment, so it is best to avoid the extra spending that does not help in the grand scheme of things.

3. Establish what you can afford
One of the essential steps in buying a home is establishing a budget to know what price range of homes that fit within your budget. In creating this budget, remember to factor in the house’s extra costs and not just its cash price. Your mortgage should not take more than a quarter of your monthly income.

4. Get pre-approved
If you followed step 2 and already have your 20% down payment, you will now need to get the other 80% by getting in dialogue with a mortgage lender and negotiating a loan. Try to get prequalified for a loan and preapproval letter to show sellers that you are dedicated to searching for a home in the competitive market. Proof of income will need to be shown and other financial information to qualify your loan for initial underwriting. The process is relatively easy once you are debt-free and work with a lender who is open to dealing with first-time buyers without a credit score.

5. Compare mortgage rates
It is paramount that you get the best mortgage rates possible when buying a home. To do this, you must shop around and get rate quotes from more than one source to decide which rate works best for you. Compare mortgage rates from at least three lenders and determine which one you would rather based on the offered rates and fees. As you compare quotes, remember you can pay the interest upfront to generate a lesser interest rate on the loan, so ask your lender if they let borrowers buy discount points.

6. Hire a professional real estate agent
Hiring a real estate agent with your interests in mind can make the whole ordeal of homeownership much simpler. They not only provide valuable and relevant market expertise, but they also can source great deals on homes. Professional real estate agents allow you to make decisions in an informed way and act as a reference for other professionals regarding your intended home’s general upkeep and legitimacy.

7. See multiple homes before making an offer
Again, it is always best to shop around before making a final offer. Do not just look at the inside of the house or the yard to determine if it is ideal for you. Do a drive-through of the area and get to know the routes and terrain. Ensure that your commute times are satisfactory and that you
feel a general sense of security living in the neighborhood. Having multiple options makes it easier to disregard a home that does not work for you.

The homeownership process can be long and tiring, but if done right, the long-term benefits of wealth generation and security will be worth the hassle. Take the time to follow these steps, and you’ll be well on your way to having your own home in the shortest possible time.