If you are buying a house for the first time, you are likely excited at the prospect of owning your own home. Of course, finding a house or condo that works for your needs and is in a convenient location is probably going to be your primary concern. Your real estate agent will be able to find properties that match the criteria you are looking for in your first home. But, there are a few essential things that you need to do before financing your first home. Here are three things that you should consider.

Come Up With A Budget

The first thing that you need to do is to come up with a budget that you can afford. While you may qualify for a specific home loan amount, that doesn't mean that you can comfortably afford that top number. When you come up with a budget, there more than just the mortgage to think about. You'll also want to consider insurance costs, maintenance costs, and taxes when budgeting. The total amount you spend on housing, not just your mortgage payment but all of your expenses, should not surpass 28 percent of your take-home income. 

Shop Around

If you are looking into home mortgages, shopping around can save you a significant amount of money. By looking at different lenders, you will be able to find the best terms on your mortgage. There are also many various programs geared toward first-time homebuyers that you should consider. Depending on your circumstances, these programs may be your best bet. You may also want to consider using a mortgage broker. A broker will do the leg work of looking into various lenders for you and help you find the best mortgage for your new home.

Set Aside Cash

Another thing that you need to do before buying your first home is to set aside as much cash as possible. Things like closing costs and other fees can add up. You'll also want to have money set aside for moving. First-time buyers should also consider putting down a substantial down payment. While most lenders no longer require a large down payment, you will still likely need to put at least some money down. The average down payment for a first-time homebuyer is 7 percent. How much you are required to put down will vary depending on the lender.

If you are buying your first home, there are a few things that you should do before taking out a mortgage. First, make sure that you come up with a budget for your new home that you can reasonably afford. Shopping around and looking into multiple lenders is another thing that you should do. This is the best way to find the best deal on a mortgage. Finally, setting aside money for a down payment, closing costs, and other expenses is essential.