When Buying Your First Home ...

Buying your first home is very exciting — and very expensive. To avoid costly errors, gather all the tips you can. Here are a few:

• Check your debt: If you’re already carrying a lot of debt, try to pay off as much as you can before taking on a mortgage.

• Check your credit score: The higher your score, the better interest rates you’ll be offered, which can save you many thousands of dollars. If your score is low, try to boost it before applying for a loan.

• Determine how much home you can afford: Don’t get locked into a home with monthly payments that leave you stretched thin. Remember that your household might encounter job losses or major medical or repair expenses, so be prepared for them with an emergency fund. As you crunch numbers, be sure to factor in property taxes, home insurance, maintenance and repairs.

• Figure out what kind of mortgage will serve you best: For example, when interest rates are low (like now), locking in a fixed-rate loan can be smart. If you won’t be in the home long, an adjustable-rate loan may be best — or consider just renting, as the closing costs may make buying not worth it.

• Aim to make a 20% down payment: Without that, you’ll need to carry private mortgage insurance (PMI), another expense.

• Hire a good real estate agent: Favor those who are recommended and have a lot of experience, ideally in the area where you want to live.

• Don’t think of your home as an investment: Home values can go down, and there are more reliable ways to build wealth. Think of homebuying as securing a comfortable roof over your head.

• Learn more about homebuying: The research may not be exciting, but it can save you tens of thousands of dollars. Check out our sister site, Millionacres.com, which covers homebuying and real estate investing.