Several people in my office are thinking about buying a home and since I’m known as the resident real estate nerd, they’ve started asking me what they should do to prepare. I always start with finances–in my experience, that’s where people are most likely to get tripped up. Borrowing hundreds of thousands of dollars is complicated — and it should be! It’s not for everyone. It’s essential for potential home buyers to understand their finances and how much they’re comfortable spending before talking with a realtor or mortgage broker.
Welllllll, not really. Realtors and mortgage brokers only get paid if you spend money, and they get paid more if you spend more. The incentives here are not in your favor. But fear not, let’s talk basics first.
What is a mortgage?
At the most basic level, a mortgage is a loan that is secured by property.
Continue reading What does it take to get a mortgage these days? at Frugalwoods.