Are You Ready for a Mortgage?

A Home Buying Article Contributed by Elizabeth Fox-Wise

Buying a Home and Committing to a Mortgage Can Be Very Scary

A mortgage is the largest debt that most people will ever take on in their life time. As such, making the decision to take out a mortgage is not one that most first time home buyers take lightly. Not only will your monthly mortgage payment probably be your largest bill, but the total amount of the mortgage debt undertaken can have a staggering, and sobering, effect on the new mortgage holder.

I can remember the few months of indecision leading up me finally filling out a mortgage application. I had nightmares about loosing my job, not keeping up with my mortgage payments, and find myself homeless. And those were on the good nights that I was able to sleep at all!

Committing to a Mortgage Does Not Have to Cost You Your Sleep

In hindsight, I realize that the fear that I faced when considering seeking a mortgage was irrational and the stress that I put myself under wan unwarranted. However, at the time, it didn't seem that way.

Let's take a more realistic look at the common mortgage fears.

The major one is that you won't be able to carry the debt responsibility and your will loose your house.

OK, worse case scenario is that the bank does repossess your house for non payment. What are you loosing? Something that you don't have right now anyway! So you won't be worse off than you are if you didn't try. Additionally, the chance of the bank repossessing your house is pretty slim. They don't want it back if they can avoid it, they want you do make good on the mortgage loan that they gave you and will usually work with you to make that happen.

Additionally, the fear of loosing your home was really one that you faced already when you got your first apartment. If you didn't pay your rent, your landlord would evict you and you would be homeless. Taking a mortgage can be less scary once you realize that fear was already faced and conquered.

Knowing You Can Afford the Mortgage Will Allay a Lot of Fears

You can lessen the amount of fear you will experience when you sign on the dotted line of your mortgage application if you are confidant in your ability to handle your monthly expenses. Therefore, before applying for a mortgage you should take stock of your financial situation.

Sit down with a real estate agent and honestly discuss your financial situation. This includes your income and assets as well as your expenses. Keep in mind that buying a home will add other expenses besides just a mortgage payment. You will have to pay home owners insurance, water and sewer expenses, and repair and maintenance expenses on the home. You will also have to pay property tax, but this is factored in to your monthly mortgage payment. Take into account unexpected expenses that may arise for repairs and such.

If you are confident that your budge can handle a mortgage payment and other home ownership expenses without being too strained, the process of securing a mortgage will be much less scary.