First off, be mindful of interest rates! You need to find the lowest rate possible (this goes without saying). In addition, make sure you get a fixed interest rate. Variable rates are dangerous because they can increase after the initial rate expires.

Know what you can afford. There is no need to get into a hole right away. A good rule of thumb is you don't want your mortgage to exceed 20% of your income after taxes. Some will say 25%, but its best to play it safe in case something happens that leaves you strapped for cash.

If you are a military veteran your state could have a loan program that offers lower rates. Besides being eligible for a VA loan, which doesn't call for a down payment, veteran mortgage programs usually offer lower interest rates than traditional mortgage companies. The best approach is to see if your state has a veteran's mortgage program.

It would probably be a good idea for you to rent in the beginning. A lot can happen in the initial years of marriage while you and your spouse are deciding where you want to live and what kind of house you want to buy. Another great benefit of waiting is it permits you to set aside some money which you can later use on the down payment.

Including a down payment when attaining a mortgage can eliminate that annoying home owner's insurance expenditure. Home owner's insurance (not to be confused with home insurance) is a payment the banks charge when a client cannot pay for a down payment. The monthly home owner's insurance sum is affiliated with the monthly mortgage payment (note they are separate articles) and typically is extended over ten years. This independent principal protects the bank in case the home ever gets foreclosed.

Yet another advantage to waiting is it gives you time to boost your credit score, which will get you a better rate. To boost your credit score, get one credit card for each of you with a low limit and low interest rate, and make a payment on it every month on time. These timely payments will be reported to the credit bureaus and will cast you in a good light with them.

Another important thing to keep in mind is obtaining a 15 year mortgage in lieu of a 30 year mortgage. Then, make payments every two weeks instead of every month. Doing this will allow you to make 13 payments per year instead of 12, and you will pay off that 15 year mortgage in around 11 years! You will also be creating precious equity in your home.

Most mortgage companies will be happy to assist you with an automatic draft. In fact, most mortgage companies have programs which will automatically draft the funds from your checking account every two weeks (I have mine set for paydays). This is cool because you never have to worry about writing a check and worrying if your payment will make it on time. Just make sure the funds are there!

Purchasing a home for the first time can seem daunting, but being patient will help in the long run. Remember, most importantly, to be patient when buying a home. There is a lot to think about and being hasty will not help you in the long run.

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