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Imagine yourself sitting in a new restaurant that just opened, waiting for someone to take your order and thinking, "What if I don't like what I ordered? Would I have to pay for it and eat it anyway?" When asked if we are ready to order, many of us ask for a few more minutes to decide, others ask for recommendations, while those who are familiar with the menu know exactly what to order, and usually are the most satisfied with the experience. Bon appetit!

Nothing can fully prepare you for new experiences, small or large. On the top of that list is the experience of purchasing your first home and getting your first mortgage. After all, it is one of the most important financial decisions you will have to make in your life. You cannot afford to be pushed into placing your order before you fully understand the financial process of owning a home.

Having an honest real estate agent to guide you through the process can provide you with a certain level of comfort. But some of us get so comfortable that we might allow our agent to influence our decisions - I know I did. I was fairly young when I decided to purchase my first home. I did not have the knowledge or the experience to proceed on my own, so I turned to my real estate agent and I trusted her guidance in the process only to find out she was the sellers’ agent and had allegiance to their interest above mine. It was a costly experience, but it empowered me to rely on my own research in making future financial decisions.

It is critical that you remain in the driver’s seat as you prepare your budget. Decide on the amount of a loan you can afford to pay back, and do not rely on the pre-qualification estimate or the pre-approval amount you received from your lending institution. According to the U.S. Department of Housing, the housing market collapse of 2008 caused over 2 million American families to lose their primary residences in bankruptcy due to overextended credit lending activities to financially trusting consumers.

Be sure to get all of the facts before you embark on the journey of purchasing a home for you and your family. Start with understanding your budget; calculate how much you can afford a monthly payment and a mortgage loan. Learn all the dos and don'ts as you explore the financial process of owning a home. Most importantly, steer away from first-time home buying mistakes such as not sticking to your budget, choosing a costly type of loan, skipping inspections, not evaluating your non-negotiable items, and not being financially prepared.

It is a lot easier to collect tips on what not to do, but it is more valuable to find out the practical and specific strategies in gaining the full understanding of the financial process of owning a home. This module is structured to provide you with step by step instructions on the financial process of owning a home and to equip you with the tips and ideas of how to make your search for your new home an enjoyable experience.

To move forward to your dreams of buying your fust home, let's follow the steps below.

Chapter 1. Key terms you need to know

Chapter 2. Components of a mortgage

Chapter 3. First time home buyer - The search process

Chapter 4. Ways to improve your chances of getting a good mortgage

Chapter 5. Amortization schedule for a mortgage

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