Buying your first house will be an exciting yet overwhelming moment in your life. Though you may think that you have the process all figured out, there might be some factors you aren't thinking about. Educating yourself on the topic will help you stay aware of your financial progress and prevent any nasty surprises.

Prepare Your Finances

It should go without saying that you should be financially stable before you decide to invest in a home. The minimum total you pay as a down payment (with maximum monthly costs) is about 3.5 percent of the home's value in most cases. However, most realtors will recommend you have more than that to reduce your monthly bill.

According to New American Funding, you can't forget about the closing costs, taxes, and insurance prices. These can add even more to your bill and can make your heart sink if you didn't know about them in advance. The most important thing you can do is talk with the professionals and see what advice they can give.

Watch Out for Red Flags

Don't be distracted by the size or design of the house, when you sign up to view a home, you should be on a mission. Search for signs of potential damage. Analyze the rooms. Prevent yourself from being ripped off. Ask realtors the essential questions.

On top of this, you need to pay attention to financial red flags. According to Podium, predatory mortgage loans often have higher than average prepayment penalties. Occasionally sellers will make you feel rushed or stressed in an attempt to make you sign something you'll later regret. Don't fall for this. Instead, tell the seller that you need to consult with your financial advisor before making the decision.

Try Not to Settle

You don't have to settle for less than what you want. While you may feel pressure to buy or commit to a mortgage, don't do anything you're uncomfortable with. If you or your spouse is searching for a specific feature, don't commit just because someone is pressuring you. According to Churchill Mortgage, prioritization should be paramount when buying a home

Write down a list of the things that you want. After you have talked with each other, decide which features you need, which ones you want, and the ones that are convenient but not necessary. Measuring your priorities is a healthy way to make a decision.

Getting your first mortgage might be stressful, but with precise planning, you can feel more confident in the process. Figure out what you want, discover red flags, and save up financially. You will find the perfect house and mortgage in the end.

Once you have your mortgage figured out, we can help you find a home! Check out our listings to get started.