While many of us envision the day when we can purchase our first home, we rarely consider the several prerequisites that must be met first.  Looking at listings online or going to open houses is just the start of what can be a difficult process for first-time homebuyers. We suspect you have questions regarding the procedure if you've never bought a house before, and we have the answers. 

Lets get you familiarized with the steps taken in the buying process; from beginning your savings to figuring out your financing possibilities, hiring an agent, and more.

1. Determine the amount you must save. 

You should have a clear notion of how much you can afford to spend and what you want to spend before you begin looking for your dream home. Do the math to determine how much to save and how long it will take you.  Before you purchase your first house, you must budget for a number of expenses.

The Down payment 

Your down payment is the largest expense you will need to save for. You must put down a certain amount of the home's buying price in order to qualify for a mortgage. While many people strive to save a down payment of 20%, the type of house, lender, and mortgage loan you select will affect how much of a down payment is actually required. Don't let the thought of a 20% down payment discourage you because there are conventional loans available for first-time homebuyers with strong credit that allow down payments as low as 3%.

Closing costs 

Prepare to pay when you eventually close on a house. When you close on the sale of a house, you must pay closing costs, which include fees and expenses. The majority of closing expenses are paid by the buyer to the mortgage lender, but certain closing fees will also need to be paid by the seller (primarily commission to the real estate agents). Closing expenses typically range from 2%  to 5 % of the loan's total amount. You can try to negotiate either alternative during your contract because the seller may occasionally pay a percentage of the closing charges or the cost of inspections. Prepare for the full bill in the meantime and put money aside to cover the anticipated closing charges.

Move-in expenses 

No matter if you choose to relocate across the street or across the nation, you will need to have some extra cash on hand to cover the cost of your move. You might also need to have some cash set aside once you move into your new house to pay for repairs, furnishings, and appliances. Here, a little cushion is helpful.

2. Look at your financing options. 

Unless you can afford to buy a home with an all-cash offer, you should think about your financing options. There are a few steps to finding the best financing option for you.

Evaluate your credit report 

Spend some time working on your credit score before even thinking about applying for a mortgage loan. Your credit score can have a significant impact on whether you qualify for a mortgage, how much you qualify for, and what your interest rate will be. If you have a low credit score, you can improve it by paying all of your bills on time, paying off debts, and keeping your credit card balances low.

See what your mortgage options are. 

There are various types of mortgages available, and doing some research to determine which type of mortgage is best for you is recommended.

• Conventional mortgage: A conventional mortgage is one that is not guaranteed by the government and is obtained from a bank, mortgage lender, or online lender. There are conventional loans for first-time home buyers that require as little as a 3% down payment. 

• FHA : These loans are insured by the Federal Housing Administration and can have down payments as low as 3.5 %. 

• USDA: USDA loans are for rural home buyers and are guaranteed by the United States Department of Agriculture. These frequently do not require a down payment. 

• VA loans: Designed for current and former military service members, VA loans are guaranteed by the Department of Veterans Affairs and typically do not require a down payment. 

Assistance programs and tax credits

Many states have first-time home buyer assistance programs to assist people in purchasing their first homes. Typically, these programs provide low-interest mortgages, down payment assistance, or assistance with closing costs. There are frequently tax credits available to first-time home buyers, so look into your city, state, and federal options for assistance, and don't forget to look into your tax credit options come tax season.

Obtain a mortgage pre approval. 

When you go house hunting, it helps to have an idea of how much a mortgage lender might lend you if you make an offer on a house. This is where a preapproval letter comes in handy. You'll apply for pre approval before applying for your official mortgage (which will happen once you've successfully made an offer on a home). You'll know how much a lender will likely lend you once you receive a preapproval letter. Remember that this is an estimate that may change once you apply for a mortgage, submit supporting documentation (such as pay stubs), and undergo a hard credit check. The more accurate — and honest — you are with lenders when applying for pre approval, the better your chances of receiving a comparable offer when applying for a mortgage. This letter can also reassure sellers that if they accept your offer, you will proceed with financing, which can help you compete in a seller's market. You'll apply for a mortgage after you reach an agreement with a seller and they accept your offer. You should get multiple mortgage loan estimates so you can compare the rates and fees to see which one will cost you less in the short and long run.

3. Hire the right real estate agent. 

You should interview agents to ensure they have a communication style that works well for you, and are a good fit for your needs. Do not be afraid to ask probing questions. Take your time here, because having the right real estate agent on your side will make the entire process much less stressful.

4. Select the best home for you 

Once you've found a great real estate agent to work with, you'll have a guide who will accompany you to open houses and help you find the right home for you. Keep an ear out for any unusual noises or odors when attending an open house. Take a close look at the outside of the house as well to get an idea of the overall condition. As beneficial as real estate agents are, you must also conduct your own research. You should tour different neighborhoods to determine which community, whether in a city or a suburb, is the best fit for you. It can also be beneficial to simulate your commute so that you are not caught off guard by a nasty rush hour surprise after move-in day. You should also consider homeowners association dues, if applicable, because they will affect your monthly budget. When it comes to the actual house, consider the advantages and disadvantages of single-family homes, condos, and townhouses. All of these house types have advantages and disadvantages, so which one is "best" really depends on which one can meet your personal and financial needs.  Your pre approval letter will also come in handy here, as you'll know which houses are within your budget, preventing you from falling in love with a home you can't afford.

5. Finish the offer and closing process. 

When you find the perfect home, you must make an offer. You can work with your real estate agent to determine how much you want to offer for the home and what kinds of contingencies you want to include or waive to strengthen your offer. The offer will then be presented to the seller's agent by your real estate agent. At this point, the buyer may reject your offer, accept it, or counteroffer. If the seller makes a counteroffer, the buyer must decide whether to accept it or make their own counteroffer. This process may take some time to complete, or one party may decide to terminate the negotiations and walk away. If everything goes well and the seller accepts the offer, you should schedule an inspection and appraisal to better understand the condition of the home and its value. The inspection will inform you of any issues with the home, and the appraisal will assist the mortgage lender in determining how much money to lend you. If the appraiser discovers a problem with the property, you may need to negotiate further to determine who will pay to repair it. After the inspection (and other final steps such as a title search and the purchase of private mortgage insurance), you can proceed to closing. When you close on a home, you must sign a lot of paperwork and pay your closing costs. When you're finished, the house is yours to call home.