With lending rates very low, this is a good time to consider buying a home. As with any major investment, you can get the most out of a mortgage by understanding the lending market and terms used in this market. With a little effort now, you could save yourself thousands of dollars in mortgage payments over the years. Before searching for a lender, there are some general tips on mortgages you may want to consider.

Your first question is probably, how much can you afford to borrow? Lenders use a general rule of thumb that your monthly mortgage payment should not exceed 29% of your monthly gross income, before taxes or any other deductions are made. Once you know what this figure is, you can shortlist neighborhoods with affordable houses. The next step is to get and compare mortgage rates from several lenders. This is always worth doing because lending rates vary greatly and shopping around can get you a better deal. You can also go through a mortgage broker who can help you find a lender. Ask the broker what fee is charged for the services you