Buying a home is a huge investment and a major life change. It’s important to understand the process before you begin so that you can make the right choices and avoid common pitfalls along the way.

Whether you’re a first time home buyer or a seasoned homeowner, knowing the steps involved in the mortgage process can help reduce stress and save you money. The goal is to have an understanding of the process so that you can make informed decisions and get the best rates on a loan for your situation.

The first step is to determine your financial goals. Once you have a rough idea of how much you can afford to spend, it’s important to start saving for the down payment. The amount of money you need to put down will depend on the type of loan you qualify for and the lender. Some conventional loans aimed at first time home buyers with good credit require as little as 3% down.

There are a few mortgage programs that are particularly helpful for first time home buyers who have lower credit scores and/or limited cash for a down payment. These include an FHA loan, a VA loan and a USDA loan.

A USDA loan, or a Rural Development loan, is offered by the U.S. Department of Agriculture and is designed to help low-income homebuyers purchase a home in areas that are considered rural. It has a low down payment requirement of 3% and is insured by the USDA.

Fannie Mae and Freddie Mac, which are federally-backed mortgage companies, also offer low-interest loans for low-income buyers. These loans can be used for single-family homes, townhomes, condominiums, planned unit developments and manufactured homes.

If you’re interested in a government-backed loan, it’s crucial to consult with your lender to find out which options are available and what your eligibility requirements will be. You should also talk to a mortgage consultant who can help you navigate the loan process.

You should also research your local area to see if any programs are available that will help you buy a home. Many states and local governments offer first-time homebuyer programs that can reduce the cost of your new home.

In some cases, these programs can include down payment assistance and low-interest financing for your closing costs. They can also help you improve your home’s energy efficiency, such as installing new windows or adding insulation.

Having an understanding of the home buying process will help you feel more confident in your search and negotiate a great deal on your dream home. It will also give you the peace of mind that comes from knowing you’ve done everything possible to buy a home that fits your needs and budget.

A real estate agent will help you locate homes for sale that meet your criteria and guide you through the home-buying process. Ask for referrals from friends, family and other recent home buyers, and interview at least a few agents before selecting one.