When looking to buy a home, the idea of their mortgage options isn't the most appealing to most people, especially to first-time homebuyers. After all, the fun part is shopping for that new house not comparing interest rates, fees, and down payments. However, when the excitement has faded and they're left with impending mortgage payments for the next 15 to 30 years, homebuyers will be glad that they did their research on their mortgage. Here are a few things to look for when researching your next mortgage.

Look at the three most important mortgage criteria: These include the term, rate, and cost. The term is the length of time the lender allots for repayment of the loan. Typical mortgage terms are between 10 and 30 years. "Rate" refers to the interest rate, which is the fee that you pay the bank for the privilege of borrowing their money. There are several variables that will decide the rate that you are offered such as your credit history, the term of the loan, and your down payment. The cost of the loan is what you will pay in closing costs. Every mortgage has closing costs, save for a few. These include attorney fees, appraisals, and recording fees. Be very careful of unnecessarily added costs. When comparing mortgages, these three variables should be the first things that you look at. If these three don't match your needs, walk away. If they do, then you can place that mortgage option in the "maybe" pile.

Make sure that you can afford the mortgage: Just because a mortgage is offered to you doesn't necessarily mean that you will be able to comfortably make your payments every month. Everyone wants the best home that they can afford, but all-too-often homebuyers find themselves in the predicament of being "house poor", which is a condition in which their mortgage payment is so large and cumbersome on their income that other areas of their lives suffer. This can lead to late payments and even foreclosure in some cases.

Consider a shorter term: A large majority of homebuyers never consider a shorter term such as a 15 year or 20 year because they believe that it will send their payments high out of reach. However, this is not always the case particularly when shorter terms often qualify for lower rates. If you do compare the two payment options and opt for the longer, 30 year mortgage then another idea is to have the lender prepare not only a 30 year payment amortization schedule for you but a 15 year amortization schedule as well. The more that you make an effort to pay your mortgage according to the 15 year schedule, the quicker you will pay down your interest and your equity will skyrocket.

Don't settle for local mortgage brokers and lenders: Utilize the power of the internet to seek out reputable mortgage brokers and lenders that not only specialize in online transactions but can give favorable terms as compared to more traditional "brick and mortar" mortgage brokerage firms that may reside near you.