Mortgage

Mortage is the process by which the selling rights of any property like the home, estate or property is given to a bank or a lending body for a said sum of money, which is normally half or three-fourth value of the mortgaged property. The borrower who takes such money tends to pay back the money on an agreed amount of interest. Once the borrowed money is re-paid in full, the borrower resumes the selling title to the property over again.

The borrower cannot sell the property as long as the loan is not repaid. The bank or the lending body takes the right to repossess the property in mortgage if the said amount against the property is not repaid on time. However, such has to be done by legal proceedings by filing in the county courts for money judgment.

Every kind of mortgage is supported by a legal agreement, which states all kinds of clauses and phrases associated with the mortgage ranging from the property value of the collateral, the interest rate levied in the mortgage, the time period during which the property will be under mortgage, the consequences of not repaying the mortgage and every kind of information will be stated in the mortgage agreement.

Prior to having the property done in a mortgage the bank checks for the following:-
Title holder of the property.
Encumbrance certificate regarding the title for the property.
Legal opinion from the attorney of the bank
Processing of the papers
Signing up of the mortgage agreement

The interest rate for mortgage loans varies between high street banks and private lenders. Of the many considerations for any mortgage, the following are the most important:-
Should the property be really put in to mortgage
Is the purpose for mortgage truly indispensable
Is the lender reliable, mortgaging to group lenders can turn out to be headache
Read in between lines of the mortgage agreement, be sure that the mortgage is not one-sided

Guarantor is another important aspect of any mortgage, if the primary borrower does not pay the money, the lender tried to get the money from the guarantor, if he fails too, then the property is taken for money judgment. Making sure that you get a reliable guarantor is important and even important is that you do not put someone who had been vouching for your mortgage need in trouble.