Are you really ready to buy your new home? A lot of your friends may be suggesting for you to buy a home especially if they see that you may be a good candidate to buy a home. But before even buying your new home, consider the following, then decide if you are really up to the task.

1. Better save first and know that you have a fair amount of money before considering buying a new home. Unlike before, mortgages can easily be obtain even for first time buyers, but since the credit crisis, a lot of banks are less eager to lend money and they tend to have a tighter lending criteria than before. So to have a better chance on getting that mortgage, better have money on your bank.

Keep in mind that first time buyers won't be able to borrow as near as 100% of the asking price. It is possible to borrow 90% to 95%, but it also means a higher rate of mortgage. So the higher you can put on your deposit, the lower the mortgage rate will be.

2. Check and compare the selling prices in the area where you intend to live. You can search the internet to get a general idea of what to expect when it comes to the prices or do a quick search of actual MLS listings in your area. After finding a house you're interested in, see if you can really afford it by calculating how much your payment would be. Your yearly gross income, possible monthly debt payment and your cash available for purchase should be well suited with one another to still live comfortably as you pay your possible debt.

You will need to know the total monthly housing cost including taxes and homeowners insurance to know the maximum amount you should pay. In some areas, taxes and insurance escrow can even double your mortgage payment. You will need to look at your budget and determine if you can really pay for it. Keep in mind that buyers should spend no more than 28% of their income on housing costs. If you go more than 30%, then you are in the risk of becoming poor.

3. Visit the place. There is nothing more satisfying for first time buyers than to see the place for themselves. It is like shopping inside a mall, but even better. You can bring a digital camera with you and begin a series of photos to let you know which ones you like the most. You can even make notes about colors and design. Of course you will need to pay attention to the home's surrounding. If it is a good neighborhood, and if you like the location and to better remember each home you visited, try to rate them in your notepad from 1 to 10 so that you can easily determine your top choice.

Ask help from your real estate agent since they know far better than you. Ask if they know about defects and other problems you may even encounter if you buy a certain home. Although they may not point out everything since they also want to sell, but ask questions as much as possible to make you feel that what you are going to buy is actually what you are looking for.