The first step when it comes to buying your first home is figuring out what your budget it. One of the biggest and most common mistakes first time homeowners make is buying a home that is beyond their means. While splurging on that 4 bedroom home may seem like it is worth stretching your monthly income, all it would take is one unexpected major expense to cause a cascading financial avalanche that can ruin your credit and cost you your home.
Before you start looking at actual homes, you should find and meet with a lender. They will be able to help you figure out your budget, including how much money you will need up front for a down payment and closing costs. If you qualify, there are also some government programs that can help you get into your first home with a low interest first time buyer loan.