Introduction
At first glance, mortgages can be a bit scary and the cause of more than a little stress. Will your application be approved? Can you really afford to commit hundreds of thousands of dollars of debt? Before you get to stressed out, it is important to keep in mind that millions of people have mortgages on their homes, so you should be fine as well.A mortgage is simply a loan similar to one you might take out on a new car purchase. The lender agrees to provide you with a lump sum to buy a home in exchange for your agreeing to pay back the borrowed amount pursuant to a payment schedule agreed upon by both of you.As you might imagine, mortgage lenders are a bit more careful about lending money than credit card companies or auto lenders. The reason is, of course, the amount of money involved. If a lender is going to loan you $300,000 or so for a property, it wants to limit the risk of you defaulting. There are a couple of ways the lender will go about doing so.
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