Definition of Mortgage
A mortgage is a legal agreement by which a bank, credit union, or other financial institution lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt. Simply put, when you take a mortgage, the home serves as collateral for the debt.
How It Works
- Borrower Requests a Loan: The homebuyer applies for a mortgage from a financial institution and submits necessary documentation, including proof of income and credit score.
- Lender Offers the Mortgage: Upon acceptable review, the lender typically offers a loan commonly known as mortgage, specifying terms including loan amount, interest rate, and repayment period which usually spans multiple years.
- Agreement Security: The loan provided to purchase or develop the property is secured against the real estate itself. In such a process if the borrower defaults on mortgage repayments, the lender delights the Possessuary / Legal rights Dearseller retains ownership Maid Deck Tic interceptions property util ratedironassage with the protectuanxleys
