Getting a mortgage loan is unlike getting a loan for another type of purchase, such as a car. Not only are mortgage loans typically issued for much more money, but the loans may be more complex and have more options than traditional loans. Here’s an overview of everything you should know about the basics of home loans—
A mortgage, or mortgage loan, is a type of loan that is specifically for the purpose of buying a home. A mortgage loan is an agreement between the purchaser of the home (the borrower) and the lender (the bank) in which the lender purchases the home on the borrower’s behalf because the borrower does not have enough cash for such a purchase. As such, the lender has the right to repossess the home if the buyer defaults on payments.
A mortgage is a specific type of loan, described above. A loan, on the other hand, can refer to any financial transaction where one party lends another money.
Another distinction between a mortgage and a traditional loan is that a mortgage is a secured loan. This means that the borrower offers collateral to back the loan; the collateral in a mortgage loan is the home itself.
If you’re in the market to secure a mortgage loan to purchase a home, there are a few things to think about:
To learn more about mortgage loans and how to buy a house in Northwest Indiana, reach out to The Jana Caudill Team directly today. Our experienced professionals can help you to choose the right home for you and aid you throughout the process.