Owning a house has always been a crucial milestone of adulthood. That is why it is known as the cornerstone of the American Dream. Unfortunately, it isn’t easy. Buying a house is perhaps the most expensive investment you’re going to make in your life.  

Luckily, there are a couple of financing options that can make your life easier. One of these options is a mortgage loan.  

For those who don’t know, a mortgage loan is a loan taken out against a property you own. The lender offers a principal loan amount and charges interest.  

If you’re looking for Fayette County TN homes for sale, here are the pros and cons of using a mortgage loan: 


Purchasing on a mortgage enables you to earn more elsewhere if you invest rather than making a huge purchase.  

  • Almost every lender will enable you to pay your mortgage anytime you want.  
  • You can protect your house against risks if it drops value.  
  • You’ve got the upper hand in liquidation. 
  • Taking a regular mortgage loan offers you an opportunity to boost your credit score.  
  • You can benefit from the tax deductions. 
  • You’ve got the chance to leverage your debt.  


  • The property acts as collateral. If you do not pay on time, you can lose your property. 
  • You will find it difficult to sell your house without equity. 
  • Lenders will often decline your mortgage application. 
  • You will encounter a lot of competitors among other buyers. 
  • Huge closing expenses and tedious closing process. 
  • Before closing, you’ll have to pay the lender expenses. 
  • You will have high payments every month. 
  • You will pay huge interest rates. 

Reasons to Go for Mortgage 

Getting financing to purchase a house might not appear like a wise move. This is particularly true for people who’ve got the money to buy their dream house. However, a mortgage loan also comes with advantages that you should think about when purchasing a house. Buying a house for cash might often limit you when other needs arise down the line.  

For example, your house might require some costly renovations and repairs. It can be difficult to get a home equity or mortgage loan for such repairs. This is particularly true if you have a poor credit score. Also, you might want to think about how much your house will be worth at that point to figure out your possibilities of getting approved for financing.  

You might encounter a lot of issues if you plan to sell the house you purchase for cash down the line. You will have to ensure you’ve got enough money reserved for the deposit on your new house. Also, you’ll have to leave yourself liquidity to cover in such cases.  

Meanwhile, getting a mortgage offers you a lot of financial flexibility. In addition to that, you can access different tax-related benefits as well. Though this shouldn’t be your main reason for taking a mortgage, it won’t hurt to take advantage of the several tax deductions that come from getting a mortgage loan.