Buying your first home is an occasion which marks a very special passage in your life. You are about to go from being a renter to being a home owner which, in a sense, means that you’re going to be “all grown up”. But when you start going through the process of first time home buying, you might quickly find that the last thing you feel like is a grown-up. There are just so many things to consider that you can easily begin to feel overwhelmed. Take a deep breath and relax. You’re going to get through this and buy your first home.

Here are the basics of the first time home buyer guide to real estate which is all you need to know to get started with the process:

• Know yourself. The first step to buying a home is knowing what kind of home you want to buy. Believe it or not, many people go looking to buy their first home without really stopping to assess what’s important to them in a home. You should really take the time to figure out everything that you want in a home, including which characteristics are non-negotiable and which you can be flexible about. Ask yourself about everything from neighborhoods and number of bedrooms to age of the home and material of the construction. By narrowing this criteria down before you start looking into buying your first home, you’ll save yourself quite a bit of time and hassle.

• Find a realtor. Although it’s possible to buy a home without the assistance of a professional, it’s a lot easier if you work with someone who knows all about the process. Do your research into local real estate agents and find one who has the knowledge and experience to assist you in buying your first home. When interviewing realtors, ask them specifically about their experience in working with first time home buyers.

• Learn the terminology. Your realtor will be able to explain everything to you as the process goes on, but things will go a lot more smoothly if you know right away what he or she is talking about. You don’t need to know what every single thing in a contract means, but you should learn the basic terminology of the real estate process. Learn about “the closing” and “escrow” and “mortgage”. A basic book about real estate or a website defining common real estate terms can do wonders for making you an informed buyer.

• Know the market. At times, it’s a buyer’s market and at times, it’s a seller’s market. Of course, you want to buy when the market is right for you, so start keeping an eye on the market in the months leading up to buying your first home. Don’t buy until the time is right.

• Don’t be afraid to negotiate. Some people find the process of bargaining to be a natural thing but many others hesitate to negotiate. Buying your first home is an exercise in the art of negotiation. Let your real estate agent help you with this part of the process but don’t be afraid of doing it. You should get the home at the right price.

• Make sure that you’re in your budget and get a good home loan. When you were first narrowing down what you wanted in your home, you probably considered cost. Before making the final purchase, make sure that the home is within your budget. And then make sure that you can get a good loan that will allow you to pay the mortgage on your home without excessive stress in your life. The new home may be ideal but if you’re going to have to move out in a year because you can’t actually afford it, then it’s not the right place for your first home.

There are many steps that take place when you’re first buying a home, from finding the home to closing the deal. However, the basics are all the same. By knowing what you want, keeping within those limits and working with professionals who can assist you throughout the process, you’ll be able to buy your first home with relative ease. Before you know it, you’ll feel all grown up.

With all the advice floating around about real estate, it is sometimes smart to step back and look at the basics. In fact, we will do it in this article.

The Basics of Getting A Good Deal on a Home

The first thing to realize is that buy a home is a good investment regardless of the timing of the market so long as the home is in good shape and you intend to live there for a number of years. Historically, real estate has always appreciated over time and there is no reason to believe that will change anything in the near or far future. If you are holding off on buying because you are waiting for lower prices, don’t wait to long. Even if you buy at the top of the market, you will see gains over the next ten years or so. As a result, the first rule is to buy when you can buy.

The second rule is the well-known cliché of location, location, location. Simply put, you want to buy in the best neighborhood you can afford. The best neighborhood is generally going to have the best schools and so on. The higher the value of the properties, the more people will strive to take care of them and so on. Buying in a bad location is a recipe for disaster unless there is some unique fact that is going to turn it into a good location. Examples can include a government revitalization effort such as happened in downtown San Diego. In the eighties, nobody would live there. The city revitalized the downtown area and built a baseball stadium for the San Diego Padres. Construction is occurring at a maddening pace and prices are in the million dollar range. This example, however, is fairly rare on a national scope.

The third basic rule is buy in the best neighborhood you can afford, but buy one of the cheapest homes on the block. The idea is to improve the home sufficiently to make it one of the more expensive homes on the block and reap a substantial gain in appreciation. When taking this approach, make sure the money you spend on improvements does not wipe out the equity gain. Also, make sure you buy the cheapest home, but one that is still in good shape.

Although there are many other rules of real estate, these are the three that matter most. If you keep them in mind, you should end up in a good situation.