Mortgage : A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt. - [sic] Google Definition

Buying a house can be difficult and overwhelming. Which is why planning for it as much as you can will be very beneficial when it is time to sign the contracts. Therefore, here are five things you should know to start planning the purchase of your new home.

1.Know your Credit Score

Your credit score is essential to know if you will be buying a house. It determines whether or not you will be approved for a mortgage or not.

2. Can you Afford a New House?

It is an obvious question, but a very important one nonetheless. You must know if you would be able to pay your monthly mortgage bill without going broke. Using a mortgage calculator like the one above is very helpful to know how much you will be paying every month.

3. What Type of Mortgage do you Want?

If you are a first-time buyer, you may not know that there are types of mortgages you can choose from. So be sure to do your research and find the best one that suits your needs and situation.

4. The Best Deal

When buying a house, make sure check out what the rates are from each available bank you have at your disposition. Some banks offer better rates than their competition. Therefore, be smart and get yourself or yourselves the best deal!

5. Special Loan Programs

Before buying a house, you would also want to see if you qualify for special loan programs by your government. This can help you get a better deal for your mortgage and great complementary offers for your mortgage.