Home ownership is a part of the American dream but it seems like it's becoming harder and harder for people to achieve that goal in their life. One of the biggest issues families face is finding the funding to finance that dream.
The application process for a mortgage involves submitting official information about the status of employment. A lender needs to know how much money a borrower is earning each month. Special formulas and other strict guidelines are used to determine if an applicant qualifies for a mortgage that covers a specific sum. Sometimes, people might get approved for a home loan that's tens of thousands of dollars less than the original expected amount. Banks and other lenders also need to ensure that borrowers have money for a down payment on a home. Additionally, all homes that are financed through a mortgage are considered collateral. Therefore, lenders have the legal right and obligation to take away any property that has not been paid for. Borrowers often get evicted after missing several months on mortgage payments.