Home Loans | Mortgage Loans | Property Loans

Home loans, also called mortgage loans, are obtained to pay for the property you want to buy. Taking a home loan is a life time decision for many people, as it involves a substantial investment typically for a long term.[br]

Home Loans: Parties Involved

 

The following are the main parties associated with the processing of home loans:

Home loans, also called mortgage loans, are obtained to pay for the property you want to buy. Taking a home loan is a life time decision for many people, as it involves a substantial investment typically for a long term.[br]

Home Loans: Parties Involved

 

The following are the main parties associated with the processing of home loans:

Lender: A lender can be any financial institution, such as banks that lend money to homebuyers. Many lenders operate online as well. The rate of interest that they charge for their home loan products are influenced by the national index. All lenders take the property in question as ‘mortgage’ to extend the loan to keep the risk of lending at bay. In case borrowers fail to make their monthly payments on time or miss too many payments, the lender has the right to take control of the property. The lending institution may even foreclose the property or sell it to compensate for the loss borne by it. The lender has the right to sell the property, even if the homebuyer transfers it to someone else. A lender is also called the mortgagee.

Borrower: A borrower is an individual who obtains a home loan against the property s/he intends to buy. Borrowers need to meet all the requirements outlined by the lenders to secure home loans. These requirements could be about submitting documents regarding personal and employment details, improving the credit rating or making monthly payments. In the event of failing to repay the loan, the borrower will lose the rights of the property bought.[br]

Mortgage Broker: A mortgage broker is an expert who provides advice to the borrower regarding which home loans are the best in the current economic scenario. Mortgage brokers have in-depth knowledge of the different home loan products and interest rates offered by various lending institutions. Most of them are also associated with lenders to help them find suitable clients. A mortgage broker charges a commission as fees for his/her services.

Financial Advisor: Financial advisors also offer advice to homebuyers regarding when they should take a loan depending upon their financial situation. They also provide tips to improve the credit rating and help homebuyers create a monthly budget to control their expenses. Financial advisors also perform calculation of monthly payments for borrowers.

Some other participants may be a real estate agent and a lawyer or solicitor.