What To Know When Buying a Home As each American ventures into their journey through the “game of life”; one often begins with finding a home. Some prefer renting; yet, many prefer to buy a home. Buying a home can be exciting and perplexed. Getting the proper information can greatly help ease the anxiety and fears of such a great purchase. The first step for a homebuyer is to understand the basic terminology used by banking institutions. Here is a short list of a few common terms: Adjustable Rate Mortgage (ARM)- interest rates on this type of mortgage are periodically adjusted up or down, depending on the financial index. Amortization- a method of equalizing the month