Many of us would have heard about the mortgage loans, mortgage lenders and brokers but what exactly are these? Let`s take a look at them in depth. A mortgage loan is a borrowing from a lender who agrees to lend money to the borrower for purchasing a property. These borrowers could be either individuals or businesses and the property could be a house or a commercial space for running a business respectively.
Here the property that is mortgaged is put under a lien and the lender acquires all the rights of selling the property to a third party in case of any default from the borrower`s side in either repaying the borrowed amount or in case of any defaults in adhering to the terms and conditions of the loan. It is a simple and very easy way of procuring a home loan wherein there is a broker assisting the borrower in finding the right lender for his needs. The mortgage lender could be either a bank, a financial institution or even a credit company and the type and size of the loan depend on the requirement from the borrower`s side.
Most people go for a mortgage loan for their home needs. I found my dream home with a mortgage lender. The best part of opting for this type of loan is that the broker who works for us takes care of all the formalities starting from filing the necessary documents till reaching the completed application to the lender and our presence is reckoned only at the final finalization stage. These mortgage lenders and brokers are all regulated by certain rules and procedures and there are expected to follow all of them laid down by the federal government. It is this that proves their legality in functioning as a lender or a broker.