While there are a lot of great deals available on houses right now, it’s an intimidating time to be a home buyer. Looking around, you see many other homeowners who are losing their homes—perhaps the house you’re looking into buying is up for a short sale or getting foreclosed on.
You’ll need to carefully calculate how much of a mortgage you can afford before you sign the paperwork.
Thinking of buying a home? Then you’re going to need a mortgage, unless you’ve got a lot of cash on hand (in which case, everything is a whole lot simpler).
Assuming you’re most people though, you probably don’t have but a small percentage of the money you need to purchase a house in full.
You’ll be asked to put that percentage down as an initial down payment, and then you’ll need to take out a mortgage to pay for the rest.