Whether you are tired of paying rent for your apartment or want to start a family and need a bigger place to live, getting a home mortgage is the first step to owning a home. The following are necessary steps to getting a Kentucky home mortgage loan.

1. • 1

     Obtain a recent credit report and scrutinize it for any inconsistencies. Clear any blemishes up before applying for a loan.

   • 2

     Currently, there are no predatory mortgage lending (intentionally coercing consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit) laws in Kentucky. However, there is pending legislation in the state congress that would create a lending law to protect consumers. Contact your legislator for more information, or visit the link included in the References section of this article.

   • 3

     Investigate homeownership assistance programs from Kentucky and the federal government, which are often available to the disabled, veterans, low-income buyers, single parents, senior citizens, and rural home buyers. Some of these programs in Kentucky are Regular Down Payment Assistance Program (DAP), HOME Special Program and the HOME Family Program.

   • 4

     Shop for loan rates from various lenders like credit unions, bank, mortgage brokers (individuals and agencies that arrange financing from a variety of lenders) and online mortgage lenders. Many companies now provide free online rate quotes.

   • 5

     Know that in Kentucky, mortgage brokers are required to be licensed and carry a $50,000 surety bond. Ask for proof of their license.

   • 6

     Avoid Adjustable Rate Mortgages (ARM). These will move the interest rate risk from the lender and onto you the borrower. If interest rates rise so will your mortgage payment. If interest rates fall, your payment will stay the same or decrease slightly.

   • 7

     Work with your preferred lender and get pre-approved for your home mortgage loan. They will want you to submit your recent tax returns, proof of employment, investment information and other financial data.

   • 8

     Hire a reputable real estate agent, and find your dream home.

   • 9

     Complete the final loan application steps, per the standards of your lender. Put a formal offer on the home of your choice.

   • 10

     Pay all closing costs, attorney fees, and real estate agent fees at the time of closing. The lender will provide you with a schedule for repayment of the mortgage loan.