If you are interested in purchasing a home you will need to be up to date and informed about the mortgage process. There are not many people who can write a check for the purchase of a new home, therefore understanding the steps, process and all that is involved with a mortgage is essential to ensuring your best interest is upheld when entering into a financial agreement.
When it comes to getting a mortgage there are two parties involved: the borrower and the lender. A mortgage is a custom agreement between the borrower and lender, which supplies the capital needed for the specific purpose of purchasing a home. A mortgage allows the lender to keep some rights to the property until the note is paid in full by the borrower. These rights allow the lender to foreclose and sell the property if the borrower does not meet the specific demands of repayment. The exact stipulation of this will be outlined in the mortgage contract.
It is suggested that the borrower agree to a fixed rate mortgage to prevent having to pay extra as the housing market fluctuates. Most home mortgages are for a period of 15 or 30 years. This means the borrower has that period of time to pay the loan back in full. Explore more about mortgages by visiting our detailed charts that outline the latest market trends.