The Bridgewaters, Massachusetts

First time home buyers are having an increasingly tough time acquiring their first dream home. Prices continue to slowly increase along with mortgage interest rates, and lenders are more picky about qualification requirements. However, those young first-timers seem to be more determined than ever to find a way to purchase a home - perhaps even more determined than their parents a generation earlier.

To help first-timers during this active summer home buying season, some timely suggestions were offered by Freddie Mac, a major government-sponsored buyer of existing home mortgages. Here's a few of their tips:

While preparing for your home purchase, take steps to improve your credit rating and score. This will have a major impact on your ability to obtain a mortgage at the best rate and terms. It will even affect the pricing of your homeowners' insurance. Establish a home buying budget.

Pre-qualify yourself for a home mortgage. Before looking at homes, work with your mortgage broker or lender in become pre-qualified for a loan. Lenders will consider your 4 Cs - capacity, credit, capital and collateral - in determining your qualification capabilities. Capacity is your ability to repay a loan based on your income and work history. Credit means your history of repaying loans and paying your bills and other obligations. Capital is your wealth in terms of the property or money you have now. Collateral is any property you own that is acceptable as security on a loan.

After you make an offer on a home, and it's accepted, you will need to make a formal mortgage application. There are many types of mortgage plans available to home buyers in today's market. Be sure you understand all the terms of your selected loan.