Buying your first home will probably be the biggest and most important purchase you’ve ever made. It can be very stressful and can even keep you up at night wondering if you’re making the right decision, especially when it comes to choosing the right home loan.

With all the other questions that attract first-time homebuyers, the questions of finding your deposit and getting the right mortgage are probably the ones that demand the most attention.

There are a number of different resources that first time homebuyers can refer to for some guidance; From financial institutions, government offices, books and the Internet, there is a wealth of information waiting to be obtained. However, there are a few things that first-time homebuyers should keep in mind when shopping for the right home loan.

Determine how much home you can comfortably afford. There are online calculators that can help you get a general estimate of what a lender might give you.

However, you should also consider your existing debt, living expenses, and closing costs when trying to figure out what your budget should be.

Get your deposit and find out if you are eligible for the First Time Homebuyer Grant offered to people who have never purchased or owned a home or property. You can check this on the government website: http://www.firsthome.gov.au.

You should try to get at least 10 percent of your projected budget price as a deposit if you want to avoid paying for the lender’s insurance on top of your mortgage.

First-time homebuyers shouldn’t feel pressured into snap decisions by lenders who use scare tactics to scare them off. Instead, they should shop around to find out what the current interest rates are, who’s offering the best deals, and how flexible the terms are.

You should never sign anything without first understanding your mortgage agreement. Find out if there are any penalties for extra payments.

Find out how loan interest is calculated. If you have chosen a variable loan, find out the length of each adjustment period. Find out how much of your monthly payments will be covered by interest and how much will go toward principal.

As long as you do your research and find out as much as you can before making a decision, you can take a lot of the stress and worry out of this important time in your life.