Taking out a mortgage loan is a major responsibility, and it is not one that should be entered into lightly. It is important that you take the time before you take out a mortgage to educate yourself about both your specific mortgage and about mortgage loans in general; this will help to make sure that you get the best deal that you can on the loan that you take out and will also ensure that you are going to be able to make your mortgage payments without any problem. While educating yourself about mortgage loans is not as simple as simply looking at interest rates, learning more about your mortgage before you take it out does not have to be difficult or complicated.

The first thing that you should do in order to learn more about the mortgage process is to take the time to learn a few basic definitions. The most important of these are terms such as principal (the amount that you have actually borrowed), APR (annual percentage rate, or the amount of interest that is being charged on your principal), and PITI (the components that are combined to determine your monthly mortgage payment: Principal, Interest, Taxes, and Insurance.)

Other common terms that you may want to know include balloon and interest-only mortgages (two mortgage types where you make smaller payments for five years or less, then pay the outstanding balance due on your mortgage as a single payment) as well as some of the additional costs that may be associated with taking out a mortgage loan. Such fees include application costs, closing costs, and brokerage fees, and in most cases they have to be paid out-of-pocket instead of being included in your monthly mortgage payment. Not every bank or lender charges all of the same fees so be sure to do some comparison shopping.

Once you have a grasp of some of the more common mortgage terminology, you should take the time to read as much as you can about how the mortgage process works in general. There are a number of books and websites that you can use to educate yourself about the mortgage process, detailing how it works from preapproval to making your final mortgage payment. Consulting multiple sources will help to make sure that you do not miss any important details that may be overlooked by a single source, and will also help to eliminate any bias that may be held by one source.

In general, the mortgage process begins with preapproval so that you will know how much you can borrow (which in most cases will only be a portion of the total value of the property being purchased) and will continue through the loan origination, credit checks, closing, and purchase. The property that is purchased will be used as collateral to guarantee the mortgage loan and ensure that the lender gets all of their money, and the lender will have a legal claim to the property (known as a lien) until the mortgage has been repaid in full. Once you have paid all of the money that is owed to the lender, the lien will be released and you will own the purchased property outright.

After learning about mortgage loans in general, it is time to start shopping around for a lender so that you can find the mortgage that will best meet your specific needs. Talk to various banks, mortgage brokers, and other mortgage lenders in your area, discussing the advantages of the loans that each offers and requesting quotes for the interest rates that they will likely charge you. This will give you an idea of how much you are going to have to pay every month on the loan that you eventually take out, and will also help you to get a feel for the various lenders in your area so that you will know which ones will give you the best deal. It is important to educate yourself about the mortgage process in general before you start shopping around for quotes so that you can ask questions about any loan terms that do not seem right as well as explore options that you might not have known were available otherwise.

When you have narrowed down your options to one or two potential lenders take the time to discuss your loan with each in depth so that you can get an idea of exactly what your final mortgage loan will be like. There is a required form called the Good Faith Estimate that your lender is required to provide; this form discloses all the fees and helps to determine both the cash required for closing as well as your final monthly payment. This will let you learn more about the specifics of each lender's loan products and will help you to choose the mortgage loan that is best for you and your property.