If you are planning to purchase a home in the near future, then you should first take some time to learn about the use of a mortgage. After you and the seller agree upon a purchase price for your desired property, you then need to come up with some way to pay that amount. Since most people don’t have that kind of money readily available, they usually make some type of down payment out of their own funds and then borrow the balance from their local community bank or credit union.
Borrowers sign a legal agreement, called a mortgage, which says that they agree to repay the money borrowed, with interest, over a specified period of time. In exchange, the bank or credit union holds title to the specified property. If the buyer does not make the required payments, the lender may take possession and try to sell it to another party. Here are some of the things you will need to know if you are going to sign a mortgage agreement:
Before signing any mortgage paperwork, ask questions and completely understand your responsibilities. Congratulations and good luck!