If you feel nervous about buying a home for the first time, you're not alone. For most people, buying their first house is both a rite of passage as well as the most significant financial decision of their life. This article will spell out exactly what to expect when you're ready to take the plunge and buy your very first home.

Ladies and Gentlemen, Start Your Saving!

Unless you're independently wealthy and can pay cash for your first home, you're going to need to obtain a mortgage. Canadian law requires that all home buyers put at least 5% as a down payment, so it's essential to begin saving right away. Furthermore, know what to expect if your down payment is less than 20 percent. Any down payments smaller than 20% of the home price will require that you also buy mortgage insurance, an additional incentive to begin saving right away.

If you're not sure where to begin, you can contact your bank and have them help you set up a separate account with automatic deposits. Another good tip is to use budgeting software or set up a budget on your home computer to start the process of setting aside money. Also, look into the options for first time homebuyers to see if you qualify for any assistance with your down payment.

Other critical steps to take immediately include:

• Pay down/off all debts.
• Check your credit score and address any problems.
• Don't take on any new debt.

Budget for the Transition

Beyond the mortgage and down payment, you're also going to need to save for fees expected upfront and closing costs. You're also going to need to move to your new home, so be sure to plan ahead for those expenses, including hiring a moving company, pre-paying utilities, registering with the authorities, and packing materials.

Lastly, it's important to have a "buffer" for your first six months or year in your new home. Even though you'll carefully inspect the house before purchase, it's smart to be prepared should any surprises pop up. A new home will be backed by a new home warranty, but as a homeowner, you'll be responsible for maintenance and upkeep. Don't forget to account for things like tools, lawn mowers, and garden equipment.

Don't Rush

Once you've decided you're ready to buy a home, you're going to feel a lot of pressure to do everything as soon as possible. Take your time, breathe, and set up a plan of action so you remain in control of the entire process.

Be sure to do your research before taking the first step, including:

• Talk to friends and family members who have gone through the process of buying a home.
• Read articles in the local press about the property market.
• Browse properties on the market today to get an understanding of what's available.
• Find a solicitor and get an estimate on their fees.
• Get a price quote for your homeowner's insurance.
• Speak to banks and lenders about the mortgage process.
• Learn about the home inspection process and what to look for.
• Determine your needs vs. wants to keep yourself within budget.
• Make an estimated budget for your first year of home ownership.
• Ask friends and family for help on moving day.

After doing your preliminary research, make a checklist of everything you want to do and/or ask, including your plan for moving.

Always Get Another Opinion

Once you begin looking at houses, you're probably going to find a property that calls out to you. Because buying your first home is such an important event, it's essential you don't rush the decision. Ask a trusted friend or family member to come back to the house with you to take another look. Since they won't be under any pressure to buy the house, they will have a different, more objective opinion, potentially pointing out things you've missed.

Be Ready for the Home Inspection

Of course, you're going to attend the home inspection, but it's essential you're prepared ahead of time to understand the entire process. Ask any and all questions that you have and take many notes. If something seems off or suspicious to you, speak to an expert or perform additional research. 

Another important step is to make sure you perform your own thorough home inspection. Slowly walk through each and every room, including out of the way places like the attic, crawl spaces, and the basement, carefully noting everything you see. Even if you have no expert knowledge about houses, you need to develop a deep familiarity with the place where you will be living for years to come.

Take Your Time When Picking Out Furniture

Most people tend to move up when moving from renting to owning, going from a smaller apartment or rental space to a house with lots of room for new furniture. Even after you get the keys, it's essential to take your time and find the right furniture.

In short, it's better to have a couple of empty rooms than to fill them up with lower-quality furniture you'll just have to replace in a few years. Resist the urge to bring any ratty or outdated furniture from your old home as well. 

Congratulations! Buying your first home is a major milestone in life. But take your time, do your research, and have an action plan ready before taking the first step. 

Forearm yourself with education and you'll be empowered to make the right choices when it comes to saving for your down payment, preparing for your mortgage application, finding the perfect home, moving, and transforming your first house into a home that you will love and cherish for years.

Photo credits: realtor showing, couple saving money, getting keys