Mortgages Making Families Own Homes

by Ralf Simpson on April 5, 2012

[I:]Mortgages are loans secured against a property mostly a home. A home buyer or home builder can approach a financial institution to obtain a loan to buy or build a home. The home is used as security and its title of possession is held by the lender until the time when the loan is fully paid.

This kind of agreement expires once the whole amount of money borrowed plus interest is fully paid. In an event where the lender is not able to service the loan the bank can reposes the property and selling it to other willing buyers to pay its money back. It is worth to inform the bank early enough when one realizes there are short comings in their payments and the bank would be willing to reschedule the payments.

In the event that a lender passes on, the bank and their legal fraternity will check for any will left by the deceased and those left behind if so willing can continue paying the mortgage but the property remains under the name of the deceased. If there is no will the property can be sold to offset the mortgage and any other debts owed by the deceased.

After being sure of the property to be bought, an application is provided by the lender which has to be filled and returned to them. Other requirements that a bank requires is the source of income if employed a letter from the employer with an attached pay slip. For a business person they would require bank statements showing how money comes in and out and then carry a credit rating to prove whether they qualify.

Insurance cover for the property is another requirement by the bank which would assist in paying for the loan if anything should happen to the building before payment of mortgage is complete.

Mortgages have helped many families realize their dreams of living in owned homes. It is very hard to save hard currency to be able to purchase a home, unless one is backed by a very strong Business.

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