How to weed out the bad and get the best for your money So you're ready to take the plunge. You've found the home and now you're looking for the best mortgage possible. Like everything else involved in the home buying process, you'll want to do your shopping. With so many lenders and so many different loans, doing your homework is highly recommended. The lending industry is competitive and there will be many clamoring for your business.

There are four basic types of loans available today. Fixed Rate, Adjustable Rate Mortgage, Jumbo and Balloon. Each of them has their positives and negatives.

A Fixed Rate is exactly that. Your interest rate will be fixed for the duration of the loan. Payments are typically higher than the other programs, but if you're planning on staying in the home for an extended period of time, this is your best option.

In an Adjustable Rate , the first year or 6 months of the loan are fixed and then may begin to rise after that. The payments are low in the beginning, but you run the risk of rates skyrocketing later on. If you don't plan on staying in the house for more than 5 years this plan is worth considering.

Large loans (typically over 250,000) are referred to as “Jumbo Loans ” there are many jumbo loan options to consider and your mortgage company can explain those to you, depending on how ‘jumbo' your loan is.

And finally there is the Balloon loan. The balloon offers extremely low payments at the beginning of the loan and makes it easier for you to qualify and purchase the home of your dreams. Setbacks include the entire loan being due all at once, usually in as little as seven years.