Unless you can buy a house entirely in cash, finding the right house is only half the battle. The other half is choosing the best type of mortgage. Since you'll likely be paying back your mortgage over a long period of time, it's important to find a loan that meets your needs and your budget. When you borrow money from a lender, you're making a legal agreement to repay that loan over a set amount of time – with interest.

You hear a lot about the down payment required to buy a home, but closing costs are also a significant consideration. You can’t eliminate all or even most of these costs, but there are steps you can take to reduce them.