There is no "one size fits all" when it comes to home loans.
As with any major purchase, experts say it's a good idea to test the market before you get a home loan.
"Yes, it's a good idea to shop around. What you'd like to do is determine which loan is best for your situation. Everyone's situation is different," said Kynan Pang, a Central Pacific Bank home loan consultant.
Where do you start when it comes time to get a home loan?
"The best way to compare home loans is to start by taking a look at a good faith estimate or a GFE and compare it to other loan offers," Pang said.
That good faith estimate is an important first step - and it can be accomplished faster than you might think.
"What a good faith estimate is, is an estimate of the settlement charges that will be assessed to the borrower throughout the transaction. The good faith estimate must be issued to the borrower within three days of signing the loan application," Pang said.
That good faith estimate will take into account a number of things, including the APR on the loan.
"APR or the annual percentage rate is the interest rate that reflects the cost of the mortgage on an annual basis. The rate takes into account points, fees, any pre-paid items and is based on the loan going to its full maturity," Pang said.
The lender will take into consideration a number of things before issuing the loan - things like the debt to income ratio.
"Total debt includes the principle and interest on the mortgage, taxes, insurance, any maintenance fees and then any other monthly debt obligations which would be your credit card bills, student loans, car loans," Pang said.
That total debt excludes utilities - and Pang says it should not amount to more than 45 percent of a borrower's income.
