A mortgage has two components, the principal and the interest. You can obtain a mortgage loan through a bank, credit union, any company who specializes in home loans or a seller that buys or refinances property. Now before you finalize any paperwork make sure you understand enough about mortgages. This will help you to choose the loan with the best possible rates.
If you understand what you will be paying towards your loan each month, this can help you when you sit and figure out what you can exactly afford. Don't worry; you do not have to be an expert on every type of loan available in the housing market. Yet, having a basic understanding will definitely help you in the long run.
You can do a lot of the research on the internet and then talk to your real estate agent, mortgage broker or loan officer. Talking to your local housing agent might also work to your advantage, because they can offer a lot of advice to you.
Start calculating everything. If it means getting a smaller home but staying on top of your finances, don't be afraid to go that route. The last thing you want to do is go over what your family can afford every month, just to have a bigger home. If it eventually puts you into debt, it's just not worth it.
