When you begin window-shopping for a home, you will soon find out that the number of houses available is almost outdone by the number and variety of home purchase loans available. Every year, lenders come up with new and innovative ways to package mortgages. They tweak them with complex interest rate schedules, they simplify them with basic low-cost approval and closing processes; and they trick them out with bells and whistles that are the latest up-to-date version of the reinvention of the wheel in terms of home purchase loans.

Doing Home Purchase Loans Research
Yes, it can be overwhelming. But no, it doesn't really have to be. To shop for home purchase loans without getting bogged down in frills and dog and pony shows and without wasting time with mortgages that are not appropriate for your particular needs  it is a good idea to first do some homework.

Talk to a mortgage advisor, or visit the Internet and research basic articles about how the mortgage business works for consumers looking to purchase a home. Familiarize yourself with the basic jargon, and the basic types of mortgage loans. Once you are up to speed enough to understand the mortgage loan process, the difference between an ARM and a fixed rate, you will also be well on your way to knowing the difference between paying an arm and a leg and getting a bargain.

Ask yourself a few basic questions:

1. How long will I live in the house?

2. How much money do I want to use for the down payment?

3. How much do I want to pay each month?

4. Do I think interest rates are going up for the long term, down, or sideways?

5. Do I have enough liquid assets to satisfy my lender reserve requirement? (Confirm your reserve requirements with your mortgage advisor.)

6. Have I been employed in the same line of work within the last two years?

7. Can I verify at least two years of rental or mortgage history?

Once you have the answers, you will be ready to consult lenders to help you clarify your goals and find loans that are tailored to suit you. Don't be afraid to ask your lenders any questions you believe are important, compare prices and terms, and be honest. If their competitor offers a better deal, say so. They will probably try to beat it, and by doing so, you'll come out a winner.