Buying a Home

Getting a Mortgage

Can you afford that new dream home? Find out here, and get a jump on the process.

Once you’ve decided on the home of your dreams, your next step will be to secure financing to make getting that home a reality.  Getting a mortgage is the next step in making your dream come true. Here are some key things to know about getting a mortgage loan (A mortgage is the instrument which will give the lender a security interest in your property, i.e., collateral.  The loan is evidenced by a Note outlining the repayment terms. Hence the phrase “mortgage loan.”).

Before the lender agrees to the financing, you need to meet certain standards that determine if you qualify for a mortgage loan, and if so, how much.  At times, it may seem as though the lender is waving a magic wand in coming up with its determinations, but the truth is that established rules and formulas exist to guide the lender in determining the potential creditworthiness of an applicant. 

How much home you can afford to buy revolves around how much of a mortgage payment you can afford to make each month (and whether your lender agrees with you!).  

If you’re single, you will be your only source of funds.  Make certain you’ve taken all your financial needs into consideration, like an emergency fund, for example.  You won’t have a spouse or co-owner to fall back on if finances get tight.  

Budgeting how much you can afford is especially important since what you can afford today, when you’re buying, may not be what you can afford several years down the road. Think ahead and plan...prudently.  What will your income be like?  Are new expenses on the horizon?  Keep your eyes on the future, but keep your feet firmly grounded in today.



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