Buying a home is an exciting time—especially if it is your first home. The majority of homebuyers cannot afford to purchase a home with cash. In fact, many struggle just to come up with the closing costs. Mortgage companies are there to help families who need a loan to purchase a home. There are several types or mortgage loans and you can have loans for 5 to 50 years. Before you apply for a loan and search for a mortgage company, keep these tips in mind so that your experience goes as smoothly as possible.

1. Do your homework. Most mortgage companies are reputable and will provide you with good information. But you are going to be the one paying the loan for the next five to 30 years. Do you know the difference between a conventional mortgage and an FHA mortgage? Do you know what an ARM (adjustable rate mortgage) is? Learn all you can before you go into the first interview.

2. Use a lender that can provide you with several types of loans. Some lenders are only qualified to do FHA loans or subprime loans. Find out what your lender provides. If they can't provide you with every type of loan, you may want to find a lender that can.

3. Everyone is looking for a great deal. But just because one company can offer you a lower rate, it doesn't mean they are the right choice. Look at the company's reputation and experience. How long has this company been in business? Are you dealing with a broker or a banker? If your lender goes out of business, your loan will be purchased by another company. This company will not know you and may not offer the same benefits. Take the time to learn about the loan company.

4. You will discover more costs associated with getting a mortgage than just a monthly payment. These costs are a normal part of purchasing a home. Make sure you know early what these costs are so that you can prepare for them. You don't want to get to the closing conference and find out that you don't have enough money. If you have any questions, ask your lender.

5. You can apply for a loan online. But do you want to do everything online? Visit the loan company in person. This will give you some insight as to what kind of company you are dealing with and their professionalism. Don't be fooled by a website and great content.

6. If you have any doubt about the mortgage company, check with the Better Business Bureau. The Arizona Department of Financial Institutions will have information as to whether or not the company has had any complaints or fines.

Buying a home and deciding how you will finance the home is a major life decision. You don't want to trust this major decision to just any company. Doing your homework about your mortgage lender can save you a big headache later.