Fannie Mae Foundation: How to Buy a Home

Vocabulary
debts
job history
mortgage loan
income
mortgage lender
repay

Purpose
To learn some of the requirements for buying a home. To write a job history.

Warm-up
Before learners open their textbooks, ask them what they know about buying a home in the United States. Make a word map on the board with “Buying a Home in the USA” in the center. As learners give you their ideas, write them on the map. Be sure to ask questions about how people get money to finance their homes.
Ask learners to read the paragraph on page 6 and circle any new vocabulary. After explaining the vocabulary, ask questions about the information the mortgage lenders need before they make a mortgage loan.

Unit 1: Do you want to buy a home?

Lesson 2: Getting money to buy a home

Usually, if you want to buy a home, you must borrow money. This type of loan is called
a mortgage loan. The mortgage loan means you are responsible for paying the lender back for the money you borrowed. If you fail to repay the lender, the lender could take possession of your house and sell it. The company or bank that makes the loan is called the mortgage lender. The mortgage lender must decide if you will be able to repay your loan. The mortgage lender must have information about you to decide if you will be able to repay the loan.

The mortgage lender will ask:

1. Have you been working for two years or more?

2. Do you pay your bills on time each month?

3. Have you saved money for a down payment?

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