When searching for a home, keep in mind that you are also shopping around for mortgages. In order to avoid foreclosures down the line and manage your money efficiently, you need to figure out which mortgage is right for you and your home. It’s important to lock in a rate as soon as you are comfortable with the numbers, so do your research beforehand.

Here are three different types of mortgages, each ideal for different lending situations.

Fixed Rate Mortgages:
Under this plan, your interest rate is guaranteed to remain the same for the entire length of the loan. You can choose a 10, 15, 20, 25 or 30 year term. This allows you to lower your monthly payments by spreading them out over a long period.

Adjustable Rate Mortgages:
With this type of loan, your interest rates will be fixed for either five, seven, or 10 years, and then vary for the rest of the life of the loan. The benefits of this type of loan are the low initial monthly payments, so if you plan to own a home for a short time, this might be the option for you.

FHA Home Loans:
This is a type of loan insured by the government, and can be used to buy or refinance one- to four-unit properties. Down payments can be as low ad 3.5%, and another of the benefits of this type of loan is flexibility, which can come in handy if you have less than perfect credit.

Whether you choose fixed rate mortgages or an FHA, make sure to set aside at least a 3.5% down payment, and try to maintain a minimum credit score of 680, which is needed to obtain a home loan. Also, sticking with your employer while going through the buying process is essential, as any changes to your income status could stop or delay your loans from coming through.

Obtaining a reasonable mortgage rate, or low rate mortgages, is difficult, but not impossible. Don’t forget to compare mortgages before locking down on one, and you’ll be sure to be living in your dream home in no time at all.