A mortgage is a loan given specifically to buy a property in which property or real estate is used as collateral to secure the loan amount. In Mortage, the loan borrower promises the lender to pay back the funds within a certain time frame for a certain cost (Interest). The lender is the one who owns the property collateral until the borrower completely returns the loan amount with interest.
As we've already mentioned before that the lender is the one who owns the property collateral until the borrower completely returns the loan amount with interest. So the mortgage is legally binding and secures the agreement in giving the lender the right to have a legal claim against the borrower’s home if the borrower defaults on the terms of the agreement.
The closing of the Mortgage Agreement is the final step of the agreement in which All parties sign the necessary papers and officially seal the deal. Ownership of the property is transferred to the buyer.
Mortgages make bigger buys feasible for people sufficiently lacking money to buy a property. Moneylenders go for this risk, making these loans as there is no certification the borrower will have the capacity to pay later on. Borrowers go out on a limb of tolerating these credits, as a failure to pay will result in a total loss of the collateral.
In Mortgage loans, you've both, advantages and disadvantages. So be wise while making your mind for buying a mortgage loan. Please share this article if you liked it.