Owning a Home and Types of Mortgages Buying and owning your own home is part of the American dream. While the dream itself has since changed, the home still remains the main focal point. Today, owning a house does not necessarily mean a house. People are now buying duplexes, co-op apartments and condominiums. For some families it may take up to a couple of generations before they are able to purchase a home. For many people it means a certain result that comes only after years of hard work. It's a life-changing decision and one of the most important decisions someone can make in their life. The reasons behind the actual purchase could be different. Before doing anything, people need to understand that this is an extraneous process and it is a long-term project. The first step in purchasing your home is to evaluate your financial situation. A person must evaluate exactly how much he can afford and borrow. Most people rely on a real estate agent to find a home. A real estate agent can help find different homes that fit the person's needs. On the Department of Housing and Urban Development website, “We recommend that you start looking for a broker as soon as you decide to purchase a home. Talk to several and find someone you think you will feel comfortable working closely with”(1) Having a wide range of options is always helpful. An agent can also help negotiate the price and show what the potential buyer needs after finding a home. A buyer may also need the services of an attorney, loan officer, insurance agents, and accountant. In general, buying your own home is a daunting task if you intend to do it yourself. Finding a mortgage can be as difficult as the house itself. There are more mortgages than possible houses. There are many factors that determine the mortgage amount and the interest on it. Credit bureaus such as Equifax, TransUnion and Experian determine whether the person has sufficient credit for a home loan. An acceptable credit score ranges from 620 and up for a mortgage. This is a very important aspect because a person's score can change the interest rate. Other important factors that decide the interest rate are the types of documents submitted to mortgage lenders.