By asking the right questions, and knowing exactly what your needs are, you can find the right loan for you. There are certain approaches that you can take while mortgage shopping that can cost or save you money.

It is still true that the better qualifications you have, the lower your interest rate will be. However, there are mortgages available for almost everyone; it's the interest rates or the down payments that vary.

Before speaking with a lender, have a list of all of your monthly expenses written down.  Along with that add up your cumulative income.  Your lender will discuss a very important term known as the debt to income ratio.  This is a derived percentage of how much do you owe vs. how much you take in.  Do not put yourself in the position where you will be paying more each month than you intended simply because the dream home requires it.  You may require a little bit more time to save and plan to achieve the goal.  That's okay - it'll be worth it in the end.   

Do your research on the types of mortgages available to you and find the one that best suits your needs. There are a number of considerations to be made in terms of finding the best mortgage for each individual:

  • What type of market are you in? Are the interest rates falling or rising?
  • Do you want a fixed mortgage rate, where you will always know what your payment is going to be?
  • What are your long-term goals? Do you intend to resell the property? Do you only need the mortgage for a short time?