Mortgages Making Families Own Homes
by Ralf Simpson
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.
Monthly payments are calculated depending on the amount of loan taken, the maturity and interest charged on the principal. Before the bank agrees to advance the loan it involves other parties to access the value of the house and compare it with the market value within that area. The two parties also have to involve lawyers whose work is to help in legal processes that pertain to buying and selling of houses.
There are other costs that are met by the borrower which include processing fee, valuation and legal fee. In most cases the bank will ask the lender to insure the property with a reputable insurance company to help both parties in case of a calamity that will find the property damaged or if the lender passes on.
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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New Unique Article!
Title: Mortgages Making Families Own Homes
Author: Ralf Simpson
Email: kellyturns@gmail.com
Keywords: loans,construction,real estate,business,environment,home repair,home improvement,blogs,hobbies,education,advice,home,family,other
Word Count: 329
Category: Hobbies
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