There are many variables at play during a real estate purchase; so when you have the chance to control one of those factors, it can be very appealing. That may be one of the reasons most buyers choose to "lock in" their mortgage rate.

As part of your home search process, you likely examined your own finances and then researched the different loan products available. Your preparation probably included analyzing varying rates and terms and talking with mortgage brokers, lenders and your real estate professional. After all that leg work you have finally identified a mortgage provider and a product that meets your needs. The next big question is when to lock in or secure that interest rate.

By locking your rate you are guaranteed that if the percentages rise by the time of your closing, you will pay the lower rate. The idea is to lock your rate while the numbers are falling, gaining the protection before they begin to rise.

It is important to note that there may be a cost for this security, as well as associated risk. For instance, locking your rate 30 days in advance may cost you one half of a point. A point is one percent of the mortgage loan amount. So that means on a $500,000 loan locking in 30 days before would cost $2,500. This fee is paid at your closing. In addition, if you lock in your rate and the rate drops below the locked-in rate, you may be stuck with a higher rate. The value of securing a low interest rate, however, even if it's not the lowest interest rate, gives buyers peace of mind.

If you are a first-time home buyer, the news for you in most parts of the country is good. Mortgage rates are relatively low and higher inventory and lower asking prices mean market conditions are in your favor. If your finances are in order, now is the time to start that home search.

Begin with some good, old-fashioned preparation. Carefully review your budget. Determine how much you will have to offer as a down payment and how much you can afford to pay monthly. Remember to calculate not just your mortgage payment, but all your costs including taxes, utilities, food, entertainment, insurances, etc. Getting a good handle on your finances is critical to making the right real estate decision.

Next, think long and hard about what you want from this purchase. Is it a starter home that you want to stay in less than five years? Or maybe you want a home that can accommodate a growing family. Take some time to define your parameters like location, number of rooms, school system, and proximity to transportation.

Once you have outlined your budget and your wants and needs, you are ready to begin viewing listings online and in person. Our team can be a huge asset during this process. We can prescreen homes and make sure they fit your budget and your needs. We can also provide insights on whether the asking price is fair and help identify a listing's strengths and weaknesses.

But even with this help, keeping track of all the pros and cons can be a challenge. Many first-time buyers keep a log or journal during their search. When you visit homes, you can take pictures of the property. At the same time take notes. Write down the things you love, like and dislike about each listing. In the end, we can help make your first-time purchase a successful one.