If you have not already, you may want to purchase a book, or find some websites like www.onlinemortagehub.com to learn more about the mortgage process. Learn as many terms related to mortgages as you can so you will know what the financial institutions are talking about when you deal with them.
If you feel comfortable with your knowledge of mortgages, then you need to start looking at different lenders. You can choose from banks, credit unions, and mortgage companies. There may be more options available, but these are the most commonly used. When you have an idea of what you want to borrow, start talking to these places to see what kind of offers you may get. If you are able to and want to spend the money, you can use a mortgage broker, they have access to large amounts of lenders, and they know what they are doing. You can also use an online service such as the one found at http://onlinemortgagehub.com/out.php?o=mortgage .
OK, now that you are talking with lenders and may have an idea of what they will lend you, be sure to find out the terms they will lend you the money on. Just about the most important one is always going to be the rate of interest. Obviously the lower the interest rate the better. Just so you have an idea on how much interest you will pay for a mortgage, consider borrowing $100,000 at 6% (great rate if you can find it). If you get a standard fixed rate 30 year mortgage and pay only the required monthly payments(at least 600/month if nothing but mortgage is included) you will pay over $115,000 in interest on the loan. Yes more than you actually borrowed in the first place. Now take the same loan, pay the same way, but make the interest 6.5% and you add over $12,000 more in interest that you will pay. These figures are not to try to scare you from buying a home, but to help show you how important it can be to get the best rate possible.
You will also find that you may have the option between a fixed and adjustable rate. Fixed rates are set for the term of the mortgage and will not change. Adjustable rates can vary causing your payments to go up or down depending on the variance. Using an adjustable rate is a little like playing the market, you may make out or lose in the long run, so be sure to understand all of the possibilities of either option, including points before you make your decision.
Now that you have talked to different lenders, do not be afraid to negotiate with them. If you have an idea of what you want, and what lenders are offering, you can try to put together a package to deal with the lenders based on what your options from different lenders are. This does not mean you will get the deal you want, but you may very well be able to get a better deal than the original offer. Remember the lenders want your business as they stand to make a large sum of money over the years from you so they may be a little flexible to get your business.