Being a first-time home buyer is a big step and an exciting experience, but it can also be scary and intimidating. This is a major decision, after all, and what happens if you make a mistake? Well, I can’t promise that you won’t make a mistake, but I can tell you that there are some things you can do to avoid it.

For one thing, the tide is turning in your favor. That is, the present mortgage crisis has made banks more cautious than they have ever been. This could actually benefit you. Banks provided loans that they shouldn’t have made, which is one of the major reasons why so many homes are in problem right now.

As entertaining as it is to criticize the banks, the homeowners must share some of the guilt. I’m not an attorney, and I understand how difficult it may be to decipher all those documents, but that’s no reason not to ask questions. When having an adjustable-rate mortgage, it’s plain stupid not to find out how high your payments may go and make sure you can afford them.

As amusing as it is to point fingers at the banks, the homeowners must bear some responsibility. I’m not an attorney, and I see how tough it may be to comprehend all those documents, but that’s no reason not to inquire. When you have an adjustable-rate mortgage, it’s foolish not to find out how high your payments could go and ensure you can afford them.

So, if your bank grants a loan of $200,000, you must ensure that you can actually afford the monthly payment. Make sure to include your property taxes and insurance in your calculations. Also, even if the bank claims you don’t have to, make sure you escrow for property taxes and insurance. Most folks will not save the money and will be caught off guard when their bills are due.

Request a referral from friends or your bank for a qualified, licensed home inspector. Do not ignore the inspection. Make sure you go with the inspector on his rounds. Don’t be scared to ask questions or worry about looking stupid. After all, this might be your house, and you have every right to inspect it.

Also, following your mortgage payment, make sure you have enough money in your monthly budget to create a savings account. It doesn’t have to be much but set aside some money each month. You never know what the future holds, so having a financial backup plan is always a good idea.

Congratulations on your decision to own your first home. You couldn’t have chosen a better moment. You should be fine if you listen to your mind rather than your heart.