Before you buy your first home

Research properties online, but don’t make a decision until you’ve toured a number of places, talked to neighbors and developed a feel for the community.

Prepare a monthly budget, and factor in costs for taxes, association fees, insurance, maintenance and repairs, as well as the mortgage.

Make sure that any contract that you sign, even for a foreclosed property being sold “as is,” has a clause that allows you to have an inspector examine the property, and to cancel the deal without penalty if you don’t like the findings. That will give you an out should the cost of repairs be too high.

Understand that any contract that’s prepared by the seller will protect the seller’s interests, not yours. Read it carefully and question any provisions that you disagree with or don’t understand. And have your own attorney review it.

Realize that if you back out of a contract, you may lose your deposit and be liable for brokers’ fees. If you don't have a valid reason to cancel, legally you may be obligated to go through with the sale.