Understanding, choosing the mortgage option for your family

Taking on a mortgage is a huge financial step, even for people who already have experience buying and owning a home.

Whether a mortgage loan will be your first or not, there is an abundance of information that needs to be gathered and considered before diving into the process of buying a home.

First, there are numerous {{a href="external_link-15768531" rel="nofollow"}}free and not-for-profit organizations{{/a}} throughout the state that offer free or low-cost financial counseling. Getting perspective and guidance from professionals whose job it is to protect you, the consumer (instead of hoping to make a profit by selling a loan or a house) can be invaluable and help save you a lot of time and money.

Second, educate yourself about mortgage loans, rates and programs offered before shopping for a house. Treat the mortgage as if it, too, is a large and important purchase.

Sandy Wheat, executive director of the N.C. Council on Economic Education, warns consumers to do their homework.

"When purchasing a vehicle or a home, it is important to shop around for the best interest rates as they can vary considerably among lenders," Wheat said.

Check and compare interest rates, prices and terms among as many lenders as you would like, and be willing to say "no" to a loan and waiting until the market becomes more favorable.

Doing this before falling in love with a specific home will allow you to shop and think as a level-headed consumer instead of risking settling on a mortgage to ensure getting a specific home.

Finally, the consumer should know the total cost of their loan.

Credit costs money, says Marquita Robertson, financial education director of the Office of the State Treasurer of North Carolina.

"Consumers need to know the true cost of their loan," Robertson explained. "Most loans include information at signing that outlines the total cost to the consumer, such as a Truth in Lending Worksheet for a mortgage or balance pay-off details in a monthly credit card statements."

There's a lot that goes into choosing the right mortgage for you and your family, and what’s covered here is just the tip of the iceberg. The {{a href="external_link-15768534" rel="nofollow"}}North Carolina Department of State Treasurer{{/a}} offers a number of resources to help you make the best choice for now and later when it comes to a mortgage loan.