how mortgage is created?

Question

can u explain to me step-by-step that how mortgage is created? pls provide with sources if possible; thanks

Answer 1

hello, here's an easy
link with info and offers on mortgages:
http://finance.ebookorama.com/

Answer 2

A mortgage is created when you use the value of an asset to borrow money. The loan then becomes secured by the asset, value of which may determine the maximum loan amount the borrower can obtain from the lender e.g. 80% loan to value (LTV)means that the borrower can borrow up to a maximum of 80% of the value of the asset.

LTV is also dependent on the type of collateral and transaction desired. In certain circumstances, the borrower may be required to "bring to the table" funds which will serve as his equity injection into the transaction. These monies are commony referred to as the "down payment" in the residential lending industry. In the U.S., the borrower must pay for private mortgage insurance (PMI) if he/she makes a down payment of less than 20% of the transaction. PMI is insurance to protect the lender in the event of default since a borrower with less of a down payment is considered to be more risky.

The repayment terms of the mortgage is agreed btw the lender and borrower and it is at a specified rate (usually at market and also based on credit worthiness of the borrower) over a period not exceeding 30-years. The repayment can be interest only or interest together with the principal (note: can also incude insurance and taxes on the property in the case of residential real estate).

Hope that helps........

Answer 3

Mortgage loans are available for anyone who wants to purchase a house or borrow against an existing property.
Mortgage companies wants an identity and income proof, credit report and bank statement, while assessing the application.

Answer 4

Exactly what do you want to learn or achieve from it? You have these options:
1.) You want to be a borrower, i.e., buy/refinance a house;
2.) You want to be a loan officer - originating, explaning and consulting about loans;
3.) You want to be a loan processor - supporting from borrower's to closing agent's.

Try going to Barnes & Nobles. If you're here in California, contact me. I can provide you with free training.