The Third Step in Borrowing SMART


I always explain to new clients that there are two conversations we must have:

  1. What CAN you do?
  2. Then, what SHOULD you do?

In this third step, this means first discussing what you CAN borrow.  Or put another way, finding out how much of a mortgage you will qualify for.

Thus, the third step in making the smartest decisions when it comes to borrowing mortgage money is “AVAILABILITY”.

This step describes all of those qualifying questions you must answer when applying for a mortgage loan:

  • How much do you make?
  • How much down payment do you have?
  • How’s your credit?
  • What other debts and obligations do you have?
  • And so on…

Essentially, it includes all of the information that goes into completing a loan application.

Since the Great Recession in the not-so-distant-past, how much is available to you has definitely been reduced…as it should have been for many homeowners.  Gone are the days of not documenting your income.  Even better, gone are the days that “greasy” lenders around the country were knowingly putting people into homes (and mortgages) they could never afford in the first place!

The world of availability will come down to your ability to repay the loan…safely and consistently…going forward.  That’s what the lenders and investors care about.  And really, it’s what you should care about, right?  So the world is a safer place for the most part for anyone looking to finance a new home.

Once you have gone through the steps of how much mortgage is AVAILABLE to you for borrowing, only then can you move on to the fourth step…how much SHOULD you borrow?  Click the links if you missed the First step or the Second step in borrowing SMART.

Trevor- SP-Leadership-2016-Portraits-468

By Trevor Hammond

About Trevor Hammond

As a veteran of the mortgage industry, Trevor Hammond is the co-author of "Borrow Smart, Retire Rich," a Certified Mortgage Adviser and a founding Faculty Member and Contributor to the National Institute of Financial Education ( And he has provided thousands of homeowners with the clarity and confidence to make smarter decisions when it comes to their mortgages and money. In 2013 he launched an entirely new kind of mortgage company: Aspire Mortgage Group, which is committed to educating and empowering homeowners to increase savings, eliminate bad debt, and safely increase net worth. The specialized group of mortgage professionals at Aspire Mortgage Group have redefined what homeowners should expect from a mortgage company. To learn more about Trevor Hammond and our team of mortgage advisors please visit our website at or email Trevor directly: Aspire Mortgage is a Sierra Pacific Mortgage Partner.
This entry was posted in Blind Spot 1: Developing a Plan, Blind Spot 2: Increasing Fiscal Literacy, Uncategorized. Bookmark the permalink.

Leave a Reply