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Home ownership is the first step in a life of financial freedom. Instead of making a landlord rich you are going to create an asset for yourself. Buying a home can be a great experience but there are a few things everyone should know before they buy.

The first thing that you will need to know is your exact financial situation. How much debt do you have? What does your budget look like? What is your credit score? How much can you comfortably afford to pay for a home? Knowing these things will help you decide how much home you can afford.

The second thing you should know is exactly how much you can afford to spend on a mortgage. A rule of thumb is that your total debt, all loans, credit cards, and mortgage payments should be under 40% of your income some advise less then 35%. Will you be getting an ARM(Adjustable Rate Mortgage), a standard 30 year fixed mortgage, or some type of government guaranteed mortgage? Unless you qualify for a special first time home owner loan or a VA loan most people will want a fixed rate mortgage at 30 or 15 years. Get your financing in order before you make an offer.

The next important piece of information in your home search is where you want to live. The location of your home will impact how much you pay, what pets you are allowed to have, and the property tax you pay. Keep in mind additional costs associated with location. Longer commutes, paying for lawn care, trash service, electricity, water, flood insurance, and gas are all expenses that may be new or change because of the location you choose to live. Location will also have a large impact on the resale value of your home choose wisely and your home may be your best investment.

After location the next most important thing to know is the length of time you plan on living at this particular house. Will you keep the house as an investment after you move on to another dwelling? The length of time you will live in a home will help determine how much you should be willing to pay, how much you have to plan ahead when choosing a home, and what type of loan you should get.

Finally you should know that your home is an investment. You must treat it like an investment. No matter how much you love a home do your due diligence, don't be pressured into buying. You must have a home inspection and make the current owner do any required repairs before you buy. Get title insurance and make sure that you understand all the terms of the contract. A home will be most peoples single largest investment.

If you educate yourself and do the proper research buying a home can be a stress free experience. If you fail to do the proper research or fail to take the process seriously it can be a nightmare. Buying a home is one requirement on the path to personal financial security. Don't make your landlord rich, buy a home.

Learn more about this author, Odin Kyle.
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