If you're new to the world of home buying, chances are you've never applied for a home loan before. Investigating the different types of loans and aiming to find the best one that fits your personal circumstances can be a lengthy and complicated process. Alternatively, it can be relatively straightforward depending on the amount of research you've done beforehand. Understanding the type of home loan and the loan provider that best fits your needs is key to making the process as smooth as possible. Generally home loans come in two varieties: fixed and adjustable. A fixed loan means that you will make repayments for a predetermined term, for example, 30 years, at a fixed interest rate. Each month you will be paying the same amount as neither the interest rate or the premium will change for the full term of the loan. The second type of home loan you should research thoroughly is an adjustable loan. This allows you to pay premiums at a fluctuating interest rate, which means that each month your payments will differ slightly. The economic conditions that influence the interest rate will accordingly affect your monthly payment. You should consider this loan when the economy is healthy and there is a relatively low rate of interest. There are several advantages and disadvantages associated with both types of loan so you should ensure you're familiar with them all before you make a choice. Another important step is choosing a loan provider. First time home buyers may be tempted to head straight for the bank. However, a range of financial institutions can be found in the loan business which is rapidly becoming more competitive. You could benefit more from taking a home loan out with a private insurance firm or a state funded scheme than with your bank. It pays to shop around to find out which providers have special offers for first home buyers. Above all, it is important to find an experienced agent that you can trust.