Things to consider before buying your first home Before buying a home for the first time, you need to make sure you're financially and personally prepared for the home buying process. To make this decision ask yourself these ten questions.

There are many costs associated with buying and selling a home. Because of that, most experts agree that it isn't a good idea to buy unless you plan to remain in the home for at least five years. Over that period of time, the home will hopefully appreciate enough in value that you can recoup the expenses associated with its purchase and sale.

As mentioned above, lenders consider your credit score, death relative to income, and employment history when determining if you are eligible for a loan. If you don't qualify for a mortgage, or if you qualify only for an expensive loan, you may want to wait until you're in a better financial position before becoming a first time home buyer.

You can qualify for some types of home mortgages with as little as 3% down or with No Down Payment at all. But this is usually not a good idea. There are added costs associated with taking out a mortgage loan that doesn't require a down payment, even with government guaranteed mortgages such as FHA or VA loans. And, not having a down payment puts you at risk of owing more than your home is worth.

Lenders want to see a stable employment history, but it's also a good idea for you personally to make sure your income is reliable. You don't want to buy a home and become unable to make payments because you lost your job.

It can be difficult to predict what will happen with the real estate market. you can look at factors such as how long homes are on the market and whether they're selling at asking price, or above it or below it, to assess whether it's a buyer's or seller's market. If It's the right time to buy for you and you plan to stay put for a long time, it may not matter much.

Most experts recommend you keep your housing costs below 30% of your income. It may not be feasible to buy without borrowing too much and becoming house poor. If you tie up too much of your money in your home, it could be difficult for you to save for retirement, vacations or accomplish other financial goals.

Many times, I'll hear a client say they were pre-qualified for $75,000 more than they asked for. Don't go there. When you borrow so much and pay it off over such a long time, even a small difference in interest rates can make a big impact. A ‘$300,000 loan at 3.25% would come at a total cost of $470,023 with monthly payments of $1,306 over 30 years while the same loan at 3.75% would cost $500,165 with monthly payments of $1,389.

Closing costs are an inescapable expense when buying a home and they can total around 2% to 5% of the purchase price, Make sure you're prepared for all expenses of owning a home, including:

• Loan origination fees
• Home inspection fees
• Appraisal fees
• Credit check
• Home insurance
• Homeowners association fees
• Prorated property taxes
• Title insurance (this protects you in case there Is an unexpected ownership claim on your property)
• Recording fees
• Transfer taxes,
• An escrow deposit (this could include depositing several months of mortgage and insurance payments in an escrow account)
• Mortgage insurance up-front premiums (for some type of loans such as FHA Loans)
• Closing fees*
• Loan discount points if you want to buy down the interest rate
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• *While some lenders allow you to borrow to cover some of these closing costs, if you do, you'd be paying interest on them over many years. It's often best to pay up front if you can afford to do so.

Many experts recommend setting aside 1% of your home's value every year to cover repair costs. Others suggest budgeting $1 per ‘square foot for maintenance and repair. You also want to be sure you don't miss a mortgage payment due to to a drop in income or an increase in your expenses.

Moving can be very expensive, especially if you're making a long-distance move. Make sure you've got money to cover the cost of getting your possessions into your new home.