A mortgage loan , therefore, is one that appeals to a mortgage to guarantee compliance with the obligation. It is a bank loan in which the person who comes to request money (the borrower ) puts a real estate as collateral: if he does not fulfill his obligation to pay, in this way, the bank can execute the mortgage and keep the living place.
That which is lent is known as a loan . The action of lending consists of giving something to a person, with the condition that it is returned within an agreed period and respecting certain requirements. Mortgage , for its part, is something linked to a mortgage (the right that is applied to a property so that it serves as a guarantee of payment of a certain debt).
The mortgage loan allows access to a significant amount of money , since the values of the buildings are high. This means that if a person mortgages a house of his property that is valued at $ 50,000 , he can receive that money as a loan. If you return the money with the corresponding interest within the agreed period, your home will no longer be mortgaged and the subject will be able to dispose of it again without any hindrance.
In the event that the bank decides to execute the guarantee due to non-payment, it is usual for a judicial auction to be convened to proceed with the sale of the property under guarantee. The money collected with the auction will remain in the bank's power to cover the debt that the person did not pay.
In addition to the risk involved in the mortgage loan, given that real estate property is at stake, it is important to highlight its complexity at the technical level, since it combines certain legal and financial aspects that not everyone has the tools to understand. For that reason it is vital to carefully plan each step before embarking on the application.
Once the interested party has identified the conditions that he expects to find in the mortgage loan according to his personal needs, it is best to make a comparison of the available financial institutions. As it is a considerable amount, even the smallest percentage differences can lead to significant savings. Among the highlights to take into account when choosing an entity, are the amortization period , the interest rate , commissions and any other expenses associated with the operation.
After requesting a mortgage loan, the financial institution needs to carry out the feasibility study of the operation, for which it asks the client (who receives the name of the borrower ) a series of determined documents.
The appraisal of the real estate property that will be used as collateral is one of the fundamental points of the mortgage loan, since from the value that follows from this analysis the entity will be able to determine the maximum amount that it is willing to offer the client. The professionals of the Authorized Appraisal Societies are in charge of defining the value of the home, and for that they must take into account factors such as: their age, their location, their characteristics (dimensions, qualities, orientation, number of floors, amenities, state of conservation, etc.), their legal status of occupation and their registration identification.
When the mortgage has been formally requested, the financial institution must deliver to the borrower a document called binding offer , in which all the details concerning the deed of the mortgage loan are found, such as the clauses that have been negotiated between both parties and those not. The mortgage entails the payment of a tax, which usually has a maximum payment period of 30 business days from the signing.
