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Borrowers have may choices when shopping for the right lender. Choices include banks, mortgage brokers, home builders, and internet lenders. Each has its advantages and disadvantages, and rates vary from lender to lender.

Here is some commonly used mortgage terminology.

Mortgage rates differ substantially based on the location of the property and the type of product selected. What follows are therefore indicative rates only. They are just some of the most interesting rates for different mortgage products that are listed and marketed on the internet.

The word mortgage comes from the French word "mort" which means "death". While buying a home main mean financial death to some first time buyers in the current environment, mortgages don't need to be intimidating. Once you understand the products available, finding the best rate is easy.

Here are some commonly used mortgage terms and their meanings.

What's the difference between mortgage prequalification and mortgage preapproval? Which one is better?

Choosing a mortgage loan should seem like a straightforward process; you borrow money from a lender for a specified amount, for a set period of time, and pay it back. However, getting a loan you feel comfortable with, one that's flexible during good times and bad, can be a challenge.

One of the components a lender uses to help determine what loan amount to approve is your down payment. A down payment not only serves as a commitment on a borrower's behalf to make good on a loan, but also acts as a lender's guarantee to minimize risk in case a borrower defaults on a loan. The more of your own cash that you can put down for a loan, the easier it is to qualify for a higher loan amount or a lower mortgage payment.

Once you've been approved for a mortgage, found a house, made an offer, and the offer has been accepted, you are close to calling your property home. What's left is to finalize the documents which will transfer ownership of the house from the seller to the buyer. The "close" or "settlement" usually involves the seller, real estate agent, lawyer, escrow agent, mortgage lender and buyer, and title company.

Knowing how much house you can afford begins by listing the type of features you'd like to have in a home. Your individual needs, location requirements, style and the amount of effort you are willing to put into finding your dream house, all factor into the equation. How important is it for you to be near a school? How long will it take you to commute to work? How much will you spend on gas to commute to work? How safe is the neighborhood? These are all legitimate questions that can help you choose your ideal home.

After you've been pre-approved for a loan, the right real estate agent can assist you in making sure the rest of the process runs smoothly.

A home is one of the most expensive purchases most of us will ever make during our lifetime. Whether you decide to rent or buy, either choice comes with its own rewards and risks.

Once you are on your way to homeownership there are certain precautions you will want to take to further minimize your risks.