Lenders line up to serve you and your needs, and not just to make sure you get the home you want. As all of us are, lenders are in it to make money, and in their case getting interest over 15 or 30 years makes life worth living. While we need loans to own our dreams, using this opportunity correctly can change our lives right now and make an even bigger difference down the road.

We must start by asking ourselves if we have or are looking for a home that we need. Sure, we all want to own a mansion, but having a lot of unusable space is a waste of money.

The best example are the 'empty nesters' or those who have recently kicked the kids out of the house. Builders are starting to read the writing on the wall when it comes to the generation known for the baby boom, as they are now building single-family homes that now fit this generation’s specific need. Fewer bedrooms overall, all of them on one level, or at least the master bedroom on the main level, are key, and often include service fees to cover upkeep of the lawn and landscaping. If you have a bedroom or two that now gather dust, it might be time to downsize and use that hard earned equity as a way to buy a home that better fits need. Using equity from the larger home can either cover the entire cost of the new home, or at a minimum will result in a smaller mortgage. This can have a huge positive impact on retirement.

On the flip side, first time home buyers should also focus on buying only what they need for the next few years. Buying a home that fits easily in the budget allows the owner to either finance over a shorter period of time, or make additional payments, which can be a huge help in reducing how much interest is paid to the lender and allows the owner to build equity faster. That will come in handy when it is time to upgrade as the family grows.

No matter where you are in life or how much you owe, it is important to get the best interest rate and terms. Make sure to compare different loans that you are comparing the same terms and conditions. If one mortgage seems like ‘steal’ compared to another, find out why. As many are finding out now, ARM loans can be a quick solution for low payments now, but can end up being a bad move down the road. Mortgage brokers are compensated on getting the deal done, and the wrong one will give bad advice to do so.

Since most of us are too busy to shop for the most competitive mortgage, some time should be spent finding a reliable mortgage broker. Ask friends and coworkers who they have used in the past, as that is a great indicator of who to use or who to stay away from. A reputable mortgage broker can get you the best deal without taking up a lot of your time. Your broker should be flexible and should be well connected with the better lenders. You also want to work with a broker who spends a fair amount of time staying updated on the finance markets versus spending all their time trying to earn new business.