It is undeniable that it is very excited moment to buy a home. You and your family will always want to have the best for your house. Finding the right location, planning for refurbishment, flooring, kitchen and so on are something that make people very much interested in buying a house.. However before closing deal of house buying there are very important elements that you can not avoided. Yes that is the Mortgage.

When you buy a house, you don’t need to pay the full price unless you have enough money for it. Event if you have small amount of money still you can buy a house by obtaining financing from financial institution. This type of financing is called mortgage. You use the property as collateral when you buy mortgage. So if you fail to pay the monthly repayment as agreed on the agreement the mortgage lender or the bank has the right to posses your house. Therefore it is very crucial to find the mortgage that really fit to your financial condition. Of course you don’t ant to finish only half way then the bank take over the houses. This obviously will cost you significant financial loses. Remember before you able to obtain mortgage you have to have certain amount of money to pay the upfront of the house prices. So if you lose the house your all money will gone including the money that you have pay monthly and the upfront money that you pay for the house prices on the first hand. This is very bad situation where every family should avoid. Therefore taking mortgage as low as possible is advisable as this will make you easy to pay the mouthy re payment for the bank.

As of today, there are many types of mortgage available for you to consider. On of the most popular type is fixed mortgage. This means that if you are taking fixed mortgage, you will pay back the money on the certain periods of time that could be 10, 15, 20 30 years periods of time…to be continued in part II.