In today’s day and age, the real estate industry is ever changing. As we evolve, so does real estate’s market. Housing prices can spiral or drop in short periods of time, different counties and locations can be booming while others are struggling to stay afloat. For the modern day middle class, it’s quite difficult to save up for a house and pay for the large purchase in full– this is where a mortgage loan comes in. Here are a few things you should know and understand about mortgages.

What You Need To Get a Mortgage

A mortgage is a loan that allows you to cover the extra cost of purchasing a home that you don’t have the savings for. Homes are expensive upfront, but a mortgage allows you to make the payments over time based on your plan. Without a mortgage and $500,000 in your savings, buying a home can seem nearly impossible.

To get a mortgage, you need a few things:

  • Good credit
  • A down payment
  • Proof of solid employment
  • Social security
  • Cash for added payment

Lending companies and banks want to see a few things when you apply for a mortgage. They want proof that you make enough income to support yourself and still pay the monthly mortgage payment. You also need proof of social security and W-2 forms. Most importantly, you need both good or great credit, and a savings that allows you to make a down payment. Without good credit and a down payment, you run the risk of not receiving approval for a mortgage.

How to Get a Mortgage

To get a mortgage you have to do your research. Lenders of a mortgage loan are typically banks or mortgage brokers such as Wells Fargo or Bank of America, and then other smaller lending companies. After you decide on a lender, then you go through the application process.

The application process will walk you through every step needed to receive your loan. Banks/lenders will look at your credit, proof of employment, and all other necessary documents when applying for a loan. If you’re approved, your total loan will accumulate interest, taxes, and more.

Types of Mortgages

There are different types of mortgages you can get to help you pay for your home.

  • Fixed vs. adjustable rate
  • Conventional vs. Government-insured
  • Jumbo vs. conforming

To name a few, a fixed-rate or an adjustable rate refers to your interest. If you go with a fixed-rate mortgage, your interest will stay the same. An adjustable rate means that the interest rate can fluctuate. An FHA loan is an example of a government-insured loan through the government, unlike the uninsured conventional loan. 

No matter what type of mortgage you go with, or what type of lender you go with, having a mortgage will make purchasing a house much more possible.


Leon Belov is the Director of Operations at The Lending Group Co, a mortgage lending company. Belov and his associates work together as a team of experts that will walk you through the entire process of applying for mortgages, review your options, and buying a home.