I think many first timers are dipping their proverbial toes in the real estate waters simply because of the current (nutso!) interest rates. I can't blame them one bit. Three of my friends have already refinanced and a couple others are getting closer to putting in offers on homes they are interested in. It really is an amazing time to buy real estate. That said, there are a few tips that first timers might take note of that could help keep them on the straight and narrow. Let's dig in.

One tip that we've encouraged folks to take over and over again is getting their finances in order. If you are saddled with some blemishes on your credit report/history, now is the time to get them remedied. Specifically what you are looking for are actual mistakes. Whether someone used your credit card to ring up a bunch of purchases or there are missed payments, you need to get those items taken care of. It should go without saying that if YOU are the one that caused those issues, perhaps you are not ready to take this plunge!

Your primary goal is to display stability over a period of time. Lenders are looking at not only how much credit you are using, but also how much you have available. This is not the time to make large purchases such as cars or furniture. It is also not recommended that you open any new accounts (Yes, even the 0% interest ones!). You want to show consistent payments and a consistent level of credit/debt. Those will help you shine for those lenders.

One of the things that many first-timers skip is the pre-approval. I've never been a big fan of window shopping since it simply means looking at things you are not going to buy. With a home purchase, the same rings true. There is literally no point in looking for homes if you don't have any idea how much the bank is going to let you borrow. Get to the bank and start that (fairly miserable) process. You'll have to provide lots of supporting information about your "income" and "outgo" so the bank can make an informed decision about your ability to pay. Once you are through this process, you are much better able to shop in your price range (since you actually have one now) and truly begin dreaming about living in the homes you are viewing.

As you begin this process, don't fall into the trap of simply searching for all homes in your price range. "Some areas have limited inventory so narrowing choices doesn't serve much purpose," notes Badger Peabody & Smith Realty (formerly Badger Realty) agent, David Cianciolo. "But in most areas, it makes much more sense to curate your list of wants and needs before you begin the home search process," he continued. David is right. It will serve you much better (and you'll be more efficient in the search) if you create (and stick to) your list of "must-haves" and "nice-to-haves".

When starting this process, try and come up with some criteria that you simply can't budge on. The home must have a garage. It needs to have at least 2 office spaces. It should be out of view of any neighbors. I need to be able to walk downtown. Anything that you are no longer willing to compromise should be on that list. This helps make your searching more efficient and honestly, more fun. It will help sift out the homes that don't make the grade regardless of their price or location.

While we're talking about must-haves, we should also talk about the "perfect home". You may want to sit down for this, but there really is no such thing. If you are operating in a budget like mine (very small), you learn quickly that you will need to make compromises and adjustments to your goals. This, again, is why you have your "must have" list. Homes that are more affordable tend to need a little TLC or are not in the most desirable location available. That's OK, as long as you check your list of things you won't live without, you'll be well on your way to moving into your new "dream" home even if it is not "perfect".

The last comment for today's first timers is to think long-term. In general, you should be thinking of making this house your home for at least 5 years. Purchasing homes for investment is not nearly as fun or rewarding, but can be a great way to make a nice second income. If you are salivating over these interest rates and watching the inventory start to swell back up, it's time to get in the game. Create a space for you and all your stuff (including pets!) and start to make a home. You'll be glad you did.