bigstockphoto_mortgage_key__162982.jpgIn today’s world, no one can afford to buy a home without applying for some kind of loan in the form of a mortgage. Mortgages are controlled by various lending companies which can include banks, credit unions, and even individuals. These parties make their money by charging interest on the loan.

A mortgage is the pledging of a property as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.

Because a mortgage revolves around the lending and repayment of money in order for lenders to make a profit, it is important that they loan to individuals who are as secure as possible; the general rule is that the more secure the individual as far as past and present money matters, the more money he or she will be lent. After all, the lender is taking a risk with his or her own funds, and will want them paid back.

The main way in which lenders will establish your security is by looking at your income and your past when it comes to credit. Most of the time this is all right, but what if you have filed for bankruptcy somewhere in the past? Will you still qualify for a mortgage?

How much time has passed?

Read (more…)