Most likely, your home is the single biggest purchase in your lifetime and your largest investment. You should therefore think long and hard about your purchase. If you are looking to purchase a home, you actually have to go through a 2 step process.

1) Looking for the right home. You'll need to find a neighborhood which suits your personality and needs. You will have to be able to afford the home you're moving into. The general rule is that your income should not exceed 28%.

2) Find the right mortgage for your needs. There are a wide variety of loans including 3, 5, 10, 15 and 30 year fixed and adjustable rate mortgage.

Because people move frequently, you not only need to find a house that suits your needs but will suit the needs of other people who will be your customer and purchase your house when you need to sell.

If you are shopping for a mortgage, you're going to be barraged by a number of different types. If you trust your real estate agent, they may be a great source to finding a mortgage. You should know that in most cases, your agent will receive a commission if they refer you to "their guy". Therefore, the real estate agent may not have your best interest at heart. Simply finding the best rate can be a poor way to choose a mortgage company. All lenders acquire funding from the same place. While nearly Mortgage refinancing tips have access to the same loan programs and borrow money at the same rate, each will have different fees.

Previously, you simply called a couple of banks and shopped around for the best rate. That has changed and there are independent mortgage companies who then sell your mortgage to banks, and other institutions. There are a number of different ways mortgage companies and banks generate fees. This should weigh into your decision before signing your mortgage documents.

If you have purchased a home, you know the mortgage process is difficult. You will be asked to submit financial documents and tax returns for the last 3 to 5 years. Then third parties get involved: the appraiser, the underwriter, home inspector, as well as the title company. Oddly enough these companies never seem to talk with each other. Unfortunately, you will be left doing the bulk of the work if you want to get things done in time for settlement date. A word to the wise; get ready for a whole lot of stress to be added to your life.

Upon agreeing to purchase a mortgage with your new mortgage company, you will receive a Good Faith Estimate. That estimate should include every expense when purchasing your mortgage. All expenses should be itemized.

Here a list of expense associated with a typical mortgage:

Loan Origination Fee-This fee is typically added in by a loan broker for the privilege of doing business with them. Never pay this fee

Application fee-Why pay for a mortgage broker to take down 5 minutes of your personal information? Never pay an application fee.

Appraisal fee-This fee is paid to the company who appraises your home. Generally this fee is negotiable.