A new home mortgage is the first loan the buyer takes out to pay for a new property, not just the mortgage a first-time home buyer takes out. For first-time buyers, getting a loan can be challenging, so being well-informed when seeking a new home mortgage is the best borrowing strategy.

Mortgages come in either fixed- or adjustable-rate kinds, and generally last for a term of 15 or 30 years. Unless the buyer makes a 20% down payment on your property, many lenders will require mortgage insurance.

In addition to the cost of the mortgage itself, the borrower will pay "closing costs" (a variety of expenses associated with the acquisition of the loan) as well as "points" (up-front interest charges; each point equals 1% of the loan value).

Qualifying for a new home mortgage often requires the buyer to have both good credit and a reasonable debt-to-income ratio. A common rule of thumb is that your housing costs shouldn't exceed 30% of your pre-tax monthly income (though this percent is higher in states where property prices are steep). Borrowers with credit problems will find it much more difficult--though not impossible--to get a mortgage loan.

Remember, a mortgage can confer significant tax benefits, as mortgage interest payments, property taxes, and even some home improvement investments are often deductible.  (Please check with your tax advisor.)