A mortgage loan uses a mortgage as a guarantee for compliance with the obligation.
A mortgage loan is one that uses a mortgage to guarantee compliance with the obligation. It is a bank loan in which the person who comes to request money (the borrower ) puts real estate as collateral: if he does not comply with his payment obligation, in this way, the bank can foreclose the mortgage and keep the property. dwelling.
It should be noted that what is lent is known as a loan . The action of lending consists of giving something to a person, with the condition that they return it within an agreed period and respecting certain requirements . Mortgage , for its part, is something linked to a mortgage (the right that is applied to a property so that it serves as a guarantee for the payment of a certain debt).
Features of a mortgage loan
The mortgage loan allows access to a significant amount of money , since the values of the properties are high. This means that if a person mortgages a house they own that is valued at $50,000 , they can receive that money as a loan. If you return the money with the corresponding interest within the agreed period, your home will no longer be mortgaged and the subject will be able to use it again without any hindrance.
In the event that the bank decides to execute the guarantee due to non-payment, it is usual for a judicial auction to be called to proceed with the sale of the property pledged as guarantee. The money collected from the auction will remain in the hands of the bank to cover the debt that the person did not pay.
Failure to make payments on a mortgage loan can lead to the loss of your home.
The importance of planning
In addition to the risk that the mortgage loan entails, given that a real estate property is at stake, it is important to highlight its complexity at a technical level, since it combines certain legal and financial aspects that not everyone has the tools to understand. For that reason, it is vital to carefully plan each step before embarking on the application.
Once the interested party has identified the conditions they expect to find in the mortgage loan according to their personal needs, it is best to make a comparison of the available financial entities. Since this is a considerable amount, even small percentage differences can lead to significant savings. Among the highlights to take into account when choosing an entity are the repayment period , the interest rate , commissions and any other expenses associated with the operation.
Real estate appraisal in the mortgage loan
After requesting a mortgage loan, the financial institution needs to carry out the feasibility study of the operation, for which it requests a series of specific documents from the client (who is called the borrower ).
The appraisal of the real estate property that will be used as collateral is one of the fundamental points of the mortgage loan, since based on the value derived from this analysis the entity will be able to determine the maximum amount that it is willing to offer the client. The professionals of the Authorized Appraisal Companies are in charge of defining the value of the home, and to do so they must take into account factors such as: its age, its location, its characteristics (dimensions, qualities, orientation, number of floors, amenities, state of conservation, etc.), its legal occupancy status and its registration identification.
When the mortgage has been formally requested, the financial institution must deliver to the borrower a document called a binding offer , which contains all the details concerning the deed of the mortgage loan, such as the clauses that have been negotiated between both parties and those that No. The mortgage entails the payment of a tax, which usually has a maximum payment period of 30 business days from the signing.