The best way to buy and finance a home is to first arrange the mortgage. Then go shopping for your home, confident you have already been pre-approved for a mortgage and won't have to panic to obtain financing.

- Buyer assumes or takes title subject to an existing mortgage already on the home. If the home's existing mortgage has attractive terms, ask if you can take it over. Many older VA and FHA mortgages lack due on sale clauses and home sellers eagerly pass them on to buyers.

- Buyer obtains a new mortgage. This is today's most common home finance method. New low down payment FHA, VA, PMI (private mortgage insurance) and conventional mortgages are readily available from banks, S&Ls, mortgage bankers, and mortgage brokers. Many lenders, however, require endless loan application paperwork.