Most people who are looking to buy a house need to take out a home loan, also known as a single-family mortgage, in which the property itself serves as protection to the lender (collateral) in the event of a default. There are a lot of options in the field of home loans, so planning is important. It is recommended to take six months to plan before applying for a home mortgage in order to prepare a budget, verify credit reports and collect money for a down payment.

There are many different types of loans offered to consumers. Some of the most popular loans are the FHA Home Loan (Federal Housing Administration) and the VA Loan (Veterans Affairs). Because the FHA loan and VA loan are guaranteed by the government, they generally feature lower interest rates and mortgage fees than other loans.