Mortgage lenders are concerned about your financial strength in paying for the loan costs and making the monthly payments to clear the debt. So, they will consider your credit score, your monthly gross income, and the amount of cash you can pay as the down payment. The higher your score, the lesser is the risk in offering you the loan.

The loan amount depends on the value of your home and the down payment. The interest rate charged on your loan depends upon your credit score, discount points and down payment. The better your score and the higher your down payment and points, the lower is the rate offered. Getting a lower rate is also possible if you can pay a part of the loan amount as prepaid interest or points. You may get a loan at fixed rates, variable or adjustable rates or a combination of both the rates.

While you are repaying the mortgage, the title of ownership of the property still remains with you. But if you fail to pay off the outstanding balance, the lien created in the mortgage loans allows the lender to take away your home. He gets the right to sell off the property in order to get back the loan balance.

You may apply for a mortgage with a bank, a credit union or a broker depending upon your requirements. But in each of these cases, you need to shop around for the best loan package which offers a reasonable rate and does not require extra charges in the form of hidden fees.