When it comes to securing a mortgage, the first important step is to determine whether you can afford the home loan and whether you qualify for it. Quantifying if you can qualify for a home loan involves examining many factors, such as income, debt-to-income ratio, credit score and the amount of cash available for a down payment.

Although the process of getting approved for a mortgage can be complicated, there are several positive benefits that come from having a home loan.

First, a home loan can help you build credit. Having a good credit score greatly increases the likelihood of being approved for a loan, and paying off a home loan demonstrates proof of financial responsibility. When maintaining a mortgage account in a timely and responsible manner, it can help improve a person's credit score.

Second, a home loan can offer an attractive rate of return. Generally, mortgages come with fixed rates that do not fluctuate with interest rate changes, thus providing additional stability to the loan. By paying on time and on schedule, a mortgage will help build equity in a home. As the mortgage balance is reduced, homeowners can borrow against it, using the funds for investments or even another home purchase.

Finally, a home loan can also provide tax advantages for homeowners. Mortgage interest rates can be used as a tax deduction, reducing the amount owed to the IRS. Additionally, if a home is sold for a profit, those gains may be exempt from capital gains tax with certain parameters.

When it comes to researching the costs of home ownership, it pays to do your due diligence when searching for a mortgage and comparing lenders. Knowing whether you qualify for a home loan is the first step in the journey to homeownership. Although the process can be complex, the benefits associated with home ownership make it worthwhile.