A mortgage is a real estate lien on your property, placed by a bank or financial institution, for money that you borrowed from the financial institution in order to pay for the property. When a mortgage has been signed and approved, you will have the obligation to pay back the loan for the property, plus interest, and the financial institution will have the right to foreclose your property if you do not repay the mortgage.
The two documents included in a mortgage transaction are the promissory note and the mortgage (or deed of trust):
If you do not have enough cash on hand to pay for the property (most people don't!), you should state in the purchase contract that you would purchase the property contingent on getting a mortgage with a particular interest rate. When the seller accepts the offer, you should apply for a mortgage as soon as possible. Once you qualify for a mortgage, you are bound under the purchase contract to buy the house.
When preparing to apply to a financial institution for a mortgage, you should have the following information available for inspection:
Mortgages come in many forms and shapes. Whatever your financial situation, you can usually find a mortgage package right for you. All mortgages, however, will require you to pay interest on the money borrowed:
Buying and financing a piece of real estate can be one of the most important experiences in your life. A mortgage lawyer can advise you of the different mortgage financing options for this financial endeavor. An attorney can also review any financial documents, and advise you about your obligations and the best way to proceed. Advice from a mortgage attorney may save you money on your loan or refinance.
Last Modified: 08-23-2016 10:51 PM PDTLaw Library Disclaimer
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