Probably not what you are hoping for, but usually you would want to have a break after setting find to True
for word1 in buf1: 
    find = False 
    for word2 in buf2: 
        ... 
        if res == res1: 
            print "BINGO " + word1 + ":" + word2 
            find = True 
            break             # <-- break here too
    if find: 
        break 
Another way is to use a generator expression to squash the for into a single loop
for word1, word2 in ((w1, w2) for w1 in buf1 for w2 in buf2):
    ... 
    if res == res1: 
        print "BINGO " + word1 + ":" + word2
        break 
You may also consider using itertools.product
from itertools import product
for word1, word2 in product(buf1, buf2):
    ... 
    if res == res1: 
        print "BINGO " + word1 + ":" + word2
        break