There has always been a long-standing debate over owning a house versus renting one, and experts have repeatedly advised their clients that purchasing a home will help them come out ahead in the long run. Most people who purchase a property do so by taking out a mortgage, a long-term loan that is usually fully secured by the property you wish to buy. When you're thinking of securing such loan, there are four easy steps to follow.

Find a Property

Before anything else, find the house you want to buy. Negotiate the price with the seller and gather the documents for the property. These will be used later on for the valuation of the house.

Choose a Mortgage Lender

The next step to getting a mortgage loan is to choose a lender. You can do this on your own, or via a financial advisor or a broker. There are several advantages to getting a mortgage broker. You get much variety as brokers typically deal with hundreds of different lenders. Brokers can thus help you minimize time spent on shopping around. They may also be able to get you better loan rates than if you deal with the lender directly from the start. Using a mortgage broker may also up your chances of qualifying for the loan amount that you want since they review your information beforehand and can set you up with the right lender. However, when employing the services of a broker, be wary of hidden costs that may be charged to you when you take out a loan.

Find Out How Much You Can Borrow

By now you will already have an idea with regards to your credit score. Gather an estimate as to the amount you can borrow. You can do this by asking your mortgage broker or by using mortgage calculators. You can find many types of useful mortgage calculators online.

Apply for a Loan

Secure the documents needed for your loan application. These typically include your tax return, bank statements, proof of income, and papers pertaining to the property you wish to purchase. These requirements are essential for the bank to assess your payment capacity, as well as put a valuation on the property. Submit these, together with the loan application form, to the lender. Choose to pay the fees upfront so that these will not be carried over to your loan.

When applying for a mortgage, be careful about mortgage fraud. Banks are very particular about this and this type of fraud carries with it a maximum of 30 years imprisonment. It can come in different forms such as income fraud, employment fraud, failure to disclose one’s liabilities, and even identity theft. Make certain you are truthful in your application. Another thing to bear in mind when getting a mortgage is to calculate the amount of equity you can afford. This will determine whether or not you would have to pay premiums for private mortgage insurance.