Look for lenders online Once you have your credit information you can type in “home loan” into any major search engine and come up with a long list of banks, credit unions and other type of mortgage lenders. Once you find a few resources, fill out their online questionnaire and you are on your way to becoming a first time homeowner.

While you’re there, any good website should also have a mortgage loan calculator. Use mortgage loan calculator to figure out what type of payment would be most comfortable for your budget.

Read up on process and read all paperwork before you accept a loan One application process is complete, you can move on to shopping for your new home. Buying a home is probably largest single purchasing decision you will ever make in your lifetime.

Spend as much as time you as you can reading books, looking up information online and reading all paperwork before you sign to ensure that you have most up to date home loan information.

Rollover Clause First clarify with your Mortgage Lender or Agent that you are indeed signing up for a balloon mortgage. Then, get a rollover clause attached to your balloon mortgage agreement. The rollover clause says that at end of mortgage term, 5, 7 or 10 years, loan will automatically rollover into another type of mortgage. This will protect your assets in case you are not able to come up with full payment on due date.

Anything you can do to protect yourself when you have a balloon loan is preferred, since most lenders are less likely to work with you to come to an agreement on due date.