As newly married couples plan their lives together, buying a home is one of the first things they discuss. However, the home buying process can seem overwhelming. But if you follow a step by step plan, you may soon be holding the keys to your own home. Now that you are planning your life together, it is good to think long term.

What is the Financial Benefit to Renting vs. Buying a Home? Put technology to work for you. The Guarantee Home Loans website, www.guaranteehomeloans.net, provides a Rent vs. Buy Calculator that can allow you to easily compare the differences between buying a home and renting one. A scenario ran on the calculator compares the financial benefit for a couple who is currently paying $1,200 per month in rent and has saved $6,500. Over the next 30 years, if the couple continues to rent they will pay $432,000 if their rent never increases. Over this same period their savings could grow to $60,562 if left untouched in an account that earned 8% interest. At this time they will still continue to pay rent. If instead, the couple purchases a home for $190,000 and used their $6,500 for a down payment, their monthly payment (assuming a 6% interest rate), including principal, interest, property tax and insurance, will be $1,348. Over the next 30 years, the couple will pay off their loan, and if their home has appreciated at 3.5% per year it will be worth $515,000. Now, the couple will no longer have a mortgage payment and will only be paying their annual property taxes and insurance. Because mortgage interest and property taxes are federal and state tax deductions, over this period of time the couple would save approximately $59,500 in tax liability, depending on their tax bracket. While the Rent vs. Buy Calculator is a handy tool, anyone interested in purchasing a home should have two even handier tools to help them with their decision. The first is a knowledgeable loan officer and the second is an experienced real estate agent. You will see why when you look at the step by step plan to buying your first home.

Figure Out How Much You Can afford This is a very important first step and can save you a lot of time and effort. A good lender can be invaluable in letting you know if you qualify for a loan. If you don't qualify now, then they can make suggestions about what you can do to qualify in the near future. Experts recommend getting pre-approved BEFORE you begin shopping for a home. As newlyweds, you might qualify for loans designed especially for first time buyers. Be certain to ask the loan officer for a Good Faith Estimate which will show you all the closing costs you will be required to pay. Lending institutions charge varying loan costs. The Good Faith Estimate allows you to do an apples-to-apples comparison between two lenders.

Select a Real Estate Agent Spend some time talking to your agent before you begin to shop. They will ask many questions to help make your search more efficient. For example, what is your ideal floor plan? How many bedrooms and baths would you need? Would you use one of the bedrooms as a home office? What school district you prefer? How far away from your job do you want to live? Would you like a yard that is easy to maintain or one that is spacious with mature landscaping? When you find a home you want and you want to make an offer, your agent will be able to provide you with a market analysis to show you what similar homes in the neighborhood have sold for. They will make sure you get copies of all property disclosures in a timely manner. Your agent will remind you of important things you should do, such as getting a home inspection, shopping for homeowners insurance and who to contact for setting up utilities.

As a newly married couple, buying a home will be one of the largest decisions you will make during your lifetime together. It can be exciting and even fun when you prepare for it in advance.

Lorna Milligan is a Realtor specializing in first time home buyers. For more information, call (559) 287-0248.