When we dream about purchasing a home, it's not uncommon to scroll through real estate websites, immerse ourselves in attractive photographs, and spend all our time imagining which dream home can be ours.

And while that might be enjoyable, it's more important to focus on logistical groundwork when you begin a homebuying journey, especially as a first-time buyer.

Advanced preparation will help you better navigate the competitive property market and make a more informed decision.

To that end, here are some of the most important steps you should follow:

Set an appropriate budget

Your budget determines when and which home you will be able to purchase. But the expenses often go beyond the mortgage payment – you will also have to factor in costs such as homeowners insurance, property taxes, and maintenance.

For that reason, building a reasonable homebuying budget is recommended according to your income, such as setting around 30% aside for the mortgage and then leaving some breathing room for additional monthly expenses.

Minimizing debt and improving your credit can be of great help in getting a more favorable home loan as well.

Determine a downpayment

While a 20% downpayment seems like the most common option, the sum you have to put down on your home will likely depend on the type of mortgage you get.

Generally, a higher downpayment comes with better loan terms, as you're considered a lower risk to lenders. But a high percentage may not be achievable for everyone, especially first-time buyers.

In that case, look into any assistance programs your local government offers to make homeownership more attainable. For example, the US provides loans such as FHA and USDA with a downpayment of 3.5% or lower.

Consult a legal professional

In countries such as Australia, on the other hand, property transactions tend to be a bit more complex, requiring conveyancing knowledge. That is why most first-time buyers here prefer to consult an experienced lawyer from Sydney before purchasing a home.

This professional can provide a tailored approach to each client and take care of all the legalities regarding a home purchase, thus ensuring a seamless transaction each time.

You should also consider hiring a similar legal professional to inform and advise you throughout the entire homebuying process.

Get pre-approved for a loan

If you're not in debt and have solid credit, getting pre-approved for a mortgage is another great step you could take. This will allow you to determine a more accurate amount you'll be able to borrow and, therefore, which homes you can afford.

Knowing your budget can be quite beneficial for finding the right home and avoiding disappointments.

A pre-approval might also position you as a more serious buyer. It will demonstrate preparedness and financial stability to sellers, not to mention that many real estate agents refuse to work with clients who haven't been pre-approved.

Research home options

You could consider several different property options, from apartments and townhomes to duplexes and single-family homes.

If you're looking to buy a home, you likely already know your preferences, but it pays to reconsider them when a clearer budget has been established.

Once you've determined the best type of home for your needs, it will be time to research suitable neighborhoods.

Although the location and price might often drive first-time buyers, don't overlook factors such as parking space, walkability to amenities, proximity to schools, property taxes, etc.

A real estate agent can be invaluable throughout this process.

Shop around for mortgages

When the time comes to begin your search for a home, shopping around for the best mortgage loan rates can be quite advantageous. Visit several different lenders, get quotes from each one, and compare their offerings.

Remember to look beyond just the interest rate – points, lender's fees, and closing costs are also important considerations.

Shopping around for home loans will allow you to find the most suitable solution for your needs, and it might even help you save thousands of dollars over the life of the loan.

Wrapping up

Purchasing a home for the first time can be a particularly stressful process. Use the advice mentioned above to prepare yourself adequately and search for a new home more confidently.