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Taking the Fear Out of Getting a Mortgage

Buying your own house is one of the most important decisions you have to make in your life. They command tremendous prices, this is why many choose to get a mortgage from a financial institution like a bank or a lender. The terms and conditions may overwhelm you, but if you take time to read and understand everything, it should all make sense.

Banks or lenders are willing to give you the best mortgage rates and deals, so you can comfortably pay that off until completion. But if you are still on the fence regarding getting one, here are some things you can think about that will take the fear out of you.

Preparing Yourself

Are you ready to get a mortgage? There is no single answer to that. It really depends on you. Only you can define your readiness. If you are unsure about that, what you can do is prepare yourself for the future financially. You have to establish the essentials of saving money. First, set aside a good amount to start your emergency funds. This is something that you set up and put some cash in regularly, but you have to move your attention somewhere else if you are getting the itch to take from it.

When you have done that, you can then set up a proper savings account, and this is where you can take out money for your wants and needs. Of course, discipline is needed to keep it filled with cash. Hopefully, you can manage to deposit more than withdraw from it.


If you are responsible enough with your finances, you most probably will be able to handle a mortgage. What does that entail? First, you should be able to hold down a job. A source of income is one of the main requirements for loans and other borrowing schemes, and you also need that to pay for your needs and bills anyway.

Being responsible with your finances also means that you have to be organized with it. This means that you need to care about how much you are earning and where your money goes whenever you spend them. Doing this is all up to you. You can use the classic way of writing your numbers in a ledger or take the modern route and make a spreadsheet out of it. Seeing your figures gives you a sense of direction and control.

Cash Flow

Taking up a loan or any form of financing program helps in managing your cash flow. You can pay for a house in full right away if you so desire, but that will look like a huge hit on your bottom line. You also would spend a lot of time trying to save and recover some of that cash back as an attempt to rebuild your savings. But otherwise, you probably will not have much reserved left for other expenses too, so you are still forced to tighten the belt for a bit. It may take a few decades to completely pay off a house through a mortgage, but the monthly trickle of payments that you have to make allows you to distribute your cash so you can spend it elsewhere.

In Return

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Paying off a mortgage takes a lot of discipline and patience. You might think that the long term period feels like a prison sentence, but you actually will get something huge in return, a house under your name. Otherwise, you have another option, one that is not as demanding with commitment, and that is renting. It also has its merits, the most prominent one being convenience. But that path does not lead you to own a property.


You can choose between mortgage plans of different rates and duration. But that does not mean you are getting a hard lock on your choice. There could be a time when you receive a huge cash bonus from your company, and then you decided to have that go to the principal of the loan. You can ask your bank if they can perform a mortgage recast, which is basically for them to recalculate the remaining balance and formulating a new term. That will result in a new lower monthly payment, and that will be easier on your finances.

While it is true that getting a mortgage will ask a lot from the borrower, it is for the greater purpose of owning a house. This will make all the calculations, payments, and time spent all worth it. If you have been dreaming about a home but are having fears about how you would be able to pay it, then assess yourself. Take time to study the mortgage plans that are available to you and if you are confident that you meet all the requirements, then jump in and become a future property owner.

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