Fear of the unknown may be one of the reasons consumers hesitate to buy a home, as the thought of securing a mortgage may be intimidating. Luckily getting a mortgage is much easier than most people realize, especially if an individual takes the time to prepare for the task.

Prior to starting the process of shopping for a home loan, individuals need to conduct their due diligence in regards to financial preparation for the task. Within the mortgage industry there are some magic numbers that, when met, will allow consumers to qualify for the best rates on any type of home loan they choose, regardless of if it is an adjustable rate mortgage or a fixed rate loan. Once a consumer has the proper numerology in tow, there are additional steps they can take to make securing a first home loan a breeze.

Set a Definite Budget

Buying a home is a costly proposition and for most home owners, the process represents the largest expense they will make in their lifetime. A majority of consumers agree to the fiduciary obligation of a mortgage for 30-years, making planning prior to the commitment crucial to overall success. That is why determining a loan maximum amount limit in conjunction with the new expenses associated with the transaction is an important step to securing home loans.

Some expenses erroneously overlooked by first time home buyers are directly connected to the transaction of securing a mortgage. Those costs include paying points in order to qualifier for lower mortgages rates, closing costs (such as appraisal, home inspection, and title insurance) and the potential cost of paying private mortgage insurance. After those debts are paid, homeowners will be burdened with the expenses of paying property taxes, homeowner's insurance, repairs and maintenance.

Only after a potential home buyer evaluates those entire expenses can they properly figure out how much mortgage they can manage stress free. Crunching the numbers on a mortgage calculator will help guide consumers through the process of ascertaining their personal loan limits. That information backed by the magic number of limiting total mortgage expenses to 35 percent of pretax is an excellent gauge to properly plan for the expense. The added perk of that strategy is that lenders favor loaning money well below the maximum mortgage limits (as opposed to the loan maximum).

Large Down Payments Help

Prior to the real estate bubble bursting, 'low down payment required' was an excellent marketing strategy within the mortgage industry at large. The promotional offers were plentiful and during the boom heyday, banks and lenders were willing to take on the additional risks associated with low-payment down offers.

Ultimately, that strategy did not prevail as lenders found out that the lower an individuals personal investment into a home, the higher the chances that they would default. The Federal Reserve Bank of Saint Louis, Missouri conducted a survey in 2009 that showed that buyers who were allowed to make smaller down payments had increased chances of defaulting on a home loan during "unfavorable economic circumstances, such as a housing market slowdown or job loss," (WSJ.com). That is why sizable down payments are back in en vogue.

Lenders prefer larger down payments for several reasons. A sizable down payment will allow a mortgage seeker to have immediate equity, require a smaller loan from a lender and can reduce the need of having to purchase private mortgage insurance (PMI). Lenders require consumers to purchase PMI when a borrower has less than a 20 percent investment in a home. Consumers that opt to put down 20 percent or more, will not need to purchase the coverage that covers the lender (not borrower) in case of loan default.

Shop Online

Prior to the advent of technology, the reality was if a mortgage application was rejected by Bank A, the odds were that Bank B and C would also say no. After that process, there were no other options until a consumer did the tiresome and necessary work of shifting their financial situation. Mortgage rate origination tools have altered the process in favor of the consumer.

With a click of a button and with some basic information mortgage seekers can now easily find a large assortment of homeloan opportunities. More mortgage seekers are going online to take advantage of the offerings and for those who do Mortgage Marvel has been ranked as the 'better mortgage rate finder'.

Industry leader Mortgage Marvel, has been the tool that over 900 lenders have relied on to conduct their business for over a decade. Savvy consumers can now go directly to the source and easily comparison shop for accurate and up-to-date mortgages rates simply by entering the zip code for where the loan is needed. Based on that information and general 'assumptions' made by the database, Mortgage Marvel will present an easy to comprehend mortgages rates information table complete with disclosures and all fees. This device will allow first time home mortgage shoppers to easily review the facts from multiple lenders, increasin