by Patrick J. Knight

Created on: August 18, 2008   Last Updated: August 20, 2008

The best possible mortgage would be no money down, and 0% interest. But since most of us live in the real world, this is a highly unlikely scenario. This being the case, let's look at what we can find. Needless to say, the most important factor in finding a great mortgage is one's credit. A credit score difference of 100 points can translate into tens of thousands of dollars in your pocket (or the bank's). The second factor is down payment. From a lender's point of view, the more money a purchaser invests in the property, the less risk the bank is taking. This too can affect your interest rate.

A third factor is loan length. The shorter the life of the loan, the better your interest rate is going to be. Put yourself in the position of a lender. Who are you more inclined to lend $1,000 to: someone who promised to re-pay you $1,100 in one year, or someone who promised to re-pay $1,050 in one month?

How is your credit?
How much per month are you comfortable paying?
How much down payment money are you comfortable with?

Order a free credit report from www.freecreditreport.com.
With your credit score in hand, and an understanding of your approximate monthly payment and down payment allowances, it is time to find a mortgage.

Your first call should be to the biggest commercial lender available. A good lender will ask you several questions. You want to answer questions with honesty. When the "interview" is complete, you should have an interest rate, with monthly payments. It is also a good idea to tell the lender you are shopping with other lenders. This way, the lender will generally offer the best rate available. Now call other lenders and compare rates. If you have a couple of weeks to work with, you should find a really great rate.

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