ABA Family Legal Guide

Buying and Selling a Home

Financing a Home Purchase

Jason had substantial investments, but while he was looking for a new home, he was laid off from his job. He was highly marketable and knew he would get another job, so he continued his search for a home. Jason eventually found a home he liked and entered into negotiations to purchase. He was embarrassed and upset to find that even though his investments exceeded the purchase price, he was unable to get a mortgage loan because he had insufficient income.

Applying for a mortgage can be a process full of unpleasant surprises. For that reason, it's a good idea to investigate how you might finance a purchase before you go too far down the path of buying a home. Do you know how much you'll be able to borrow, and how much home you'll be able to afford? What's the difference between being prequalified for a loan and preapproved? This section will take you through some finance basics, and give you an idea of your options.

Subsections

1. The Basics
2. Applying for a Loan
3. Different Types of Loans
4. Key Provisions of the Loan Documents