You’ve selected your new home and the offer has been accepted. Congratulations! Now for the next step: the journey to get your mortgage. You have much to consider before you “sign your life away.”

Home buyers are often so excited that they rush the mortgage process. However, take the time to research and plan ahead because it will be extremely beneficial for years to come. Check out the following steps to obtain your mortgage.

Loan Program Consideration

The goal is to find a loan program that best fits with your needs. You’ll want to consider the following while you shop around:

• How long you expect you’ll live in the house
• Upfront costs
• Interest rates
• The amount you can qualify for, loan wise

Loan Application

After you’ve selected your loan program, you’ll want to complete the application process with your lender. They will need to verify your income and obtain a variety of documents in order for you to apply for your mortgage.

After you apply for the loan you’ll get a loan estimate which is the best guess of what your closing costs will be and provides information about your loan details. Then your lender will send you a commitment letter which declares they will make you a loan.

Down Payment

The down payment that home buyers provide is the initial investment they make and this amount is not included in the mortgage amount owed.  Buyers can avoid private mortgage insurance if they put 20 percent of the home’s purchase price down. You’ll have to figure out what you can afford to put down.

Types of Mortgage

There are two main types of mortgage loans.  Home buyers must choose between a fixed-rate or adjustable-rate mortgage.

Fixed rate mortgages have an interest rate that remains the same when it comes to the principal and interest of your payment.

Adjustable-rate mortgages mean that the buyer takes on the interest rate risks that the lender will typically assume with fixed rate mortgages. Home buyers can often receive a lower beginning interest rate with this option.

There are advantages and disadvantages to both options. Many home buyers go with a fixed-rate mortgage because they are able to have consistency with their monthly payments.

Home buyers have several steps to go through when it comes to handling their mortgage. Don’t be afraid to ask your lender questions for further clarification. The process goes fairly quickly in most cases and is worth it as you work toward home ownership.