First time home buyers are faced by unfamiliar road and risks. The possibility of buying the wrong home at a wrong time is higher for them than experienced home buyers. A suggestion to home buyers is to do research and take into consideration the following home buying traps.

Usually, first time home buyers do not know exactly what they are getting into when they do their first buy. One is the unfamiliar terminologies related to buying. Together with those terminologies are processes and activities that the buyer is also unfamiliar with.

Below are some things to stay away from or be cautious about.

Advice on what you can afford – Your agent, broker and you lender don’t know what you can afford. At best, they know the guidelines for various loans. These guidelines are designed to minimize their risk and not ensure that you maintain good financial health. Make sure you know how much you can afford.

Home Inspector – The agent recommends an inspector as he/she can do a good job. When the agent tells you that the inspector has done great jobs in the past, this may mean he/she has done a good job inspecting or he/she saw to it that the buyer bought the house since he/she kept silent about the problems that could have endangered the negotiation.

You as a buyer should be careful and suspicious in getting a home inspector. A recommendation from the agent may be good but referrals from other recent buyers may be better. Try to get at least three inspector candidates for an interview.

This will give the home inspector an idea of what you are expecting of him/her and ensure that he/she is really "your" inspector who will provide accurate information. You would know what to expect when you get to buy the property.

A temporary loan – ARMs, interest only now and flexible payment loans are types of loan that can be easy in the early years of mortgage payment. But these can be disadvantageous to you if you do not know the implications. People sometimes are advised to get a low payment mortgage now and then refinance in a few years when their income is higher.

The problem in these types of loan is that no one can predict where interest rates will be five years from now. If they are higher, you will have missed the opportunity to lock the rates in. If your payment has been rising with those rates, you may not be able to afford your home even if your income is higher. You may not be building equity in your home, that when the home prices drops, the value of your home will be lower than the amount you owe.

The neighborhood – Look at it at different times of the day, on weekdays and weekends. You might discover some good or bad news. Ask the neighbors about their likes and dislikes. This may help you determine if you can live along with them in one neighborhood.

Readiness – Let uncertainty not scare you from buying the house when in fact you are ready. Just consider the widening gap between the costs of renting and owning. Also, in 5 to ten years, the value of your home will be higher. So if you plan to stay there more than ten years, it is good

Buying the house when you are not ready - Owning a house is a great way to build wealth. Even if you can afford to pay for the mortgage but not yet ready to settle down in that place, don’t. You should also consider factors such as job security, possibility of transferring to another area and how long are you planning to stay in that place.

So when buying your new home, do research, deal with the right person, determine how long will you stay and make sure you can afford it.