For people who are buying a house for the first time, often the biggest obstacle is credit. They simply won't have made that big of a purchase before - buying a home is a big thing, and if you haven't improved your credit beforehand, you can end up with a much higher interest rate that costs a lot more.

If you haven't already bought the house, you need to start planning about a year or so out. Start doing little things that will improve your credit - make sure that you pay all your bills and debts on time. Get some credit card debt and carry it over from month to month. A long history of paying back debts is important - even a small, five hundred to one thousand dollar debt will get you a better credit rating for having made regular payments.

If you're nearing the sale, then you need to find a lender. Always talk to a bank who you have a relationship with first. Many banks will give you points or discounts for having banked with them - they already know you and your history, and they have a better chance of monitoring and keeping up with their own customers. You'll want any discount you can get - even small decreases in the interest rates make a big difference over the life of the loan. Also, you need to make sure to check for any programs or discounts for first time home buyers. Many people don't realize that there are federal HUD loan programs that can help you out - the reduced cost is well worth it to get your first home.