Chapter Four

Obtaining A Mortgage

Overview

Almost everyone who purchases a home must borrow money. Chapter Four will explain the steps for getting a loan to purchase your home. We will look at the various sources of mortgage loans and explain how to find a lender that offers the best terms. A checklist (Worksheet 3) has been provided in the appendix to help you compare terms being offered by different lenders. Next, various loan terms and the types of loans that lenders may offer are defined. The process of applying for a loan will then be reviewed, including details of a typical loan interview and guidelines used by lenders in deciding whether to approve a loan. A description of steps you may take if your loan application is denied, is followed by information about special circumstances such as guardianships and probate court approval. Considerations for long range planning are discussed to ensure that your homeownership experience will be an enjoyable one rather than a strain on your finances. Finally, suggestions on updating your action plan and a checklist to review the steps for obtaining a mortgage appear at the end of this chapter to help you move forward with your homeownership dream.