imageUnderstanding The Basics Of Mortgages

Understanding The Basics Of Mortgages

12Jan 2010

Before searching for which mortgage lender to apply, don't you think it is wise to understand first how the mortgaging system works? Mortgage is a method of securing payment for a debt with the use of a property such as real estate.   When you secure for a mortgage, this means that you agree with the purchasing method without having you pay for the full price right away. Mortgages can be classified as commercial or residential.   The two key parties involved in a mortgage are the creditor and debtor. The creditor can be a person or an institution that lends money to buy a property. On the other hand, the debtor borrows the money from the creditor. The debtor, in order to get a mortgage loan, must meet the qualifications and requirements set by the creditor. Failure to meet the conditions means cancellation of the contract or reclamation of the property.   An attorney normally represents the debtor. He acts as the solicitor or conveyor of the agreement. A debtor can also hire a third person, the mortgage broker to search and compare mortgage firms for him. He is in charge of finding the most competitive mortgage loan in the market.   Nowadays, it has become popular to secure a mortgage loan when buying a real estate.

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