Many people believe that you need 20 percent down to purchase a home — however, this isn’t necessarily true. There are loans, such as the FHA loan and the VA loan, that allow you to purchase a home with little to no money down. Your real estate agent or mortgage company can help you find a loan product that suits your needs and your current financial situation. Never assume that you can’t purchase a home without first asking.

Interest rates may fluctuate several times a day, and they are often rising. It’s best to lock in an interest rate as soon as possible. Locking in an interest rate doesn’t mean that you need to take that interest rate — it merely guarantees that you will get that rate if you choose to take the loan with that company in a reasonable period of time. You can still negotiate or switch to another company if rates go down rather than up. Locking in an interest rate requires that you get a pre-approval. Interest rates are incredibly important. Just a slight increase of an interest rate could mean the loss of thousands of dollars over the term of your loan.

Mortgage interest rates are usually either fixed-rate or adjustable-rate. A fixed-rate mortgage will be the same interest rate for the entire life of the loan; usually 30 years. Meanwhile, an adjustable-rate mortgage will start out low but will gradually get higher. Many prefer a fixed-rate mortgage because it is more consistent.

Keep in mind that you can pay down on points if your interest rate is not what you desired. Paying down points means that you give the bank a certain amount of money upfront in exchange for a lower interest rate; this can save you significant amounts of money over time. It’s always a best idea to purchase homes when interest rates are low. Interest rates can have a tremendous effect on how large of a home you can buy.