if a person aquires a loan for a morgage, or business, or finance, whatever the amount does it go in the bank?

Question

does the loan go in the bank all at once, or is it ;paid out to the say morgage company,or whatever the business involved is, can,and is the amount placed in the persons bank account,all at once, and can it stay there as long as payments are met on time

Answer 1

When you secure the loan, it is for the purpose of paying for "something". The lender, that you secured the loan from, will pay whomever is selling "something" on your behalf - in full - the amount that the parties agreed to.

You then pay the monthly amount that you agreed to pay the lender for the loan that you secured with them.

Answer 2

If you are the seller and you sold your home than the money is paid out first to the Lender (if you have a morttgage, weather a first mortgage &/or a lein on your property. The title company does what is called a title search under your name, parcel number, social security, etc and make sure the title is clean. So any judgements on title would have to be paid off too.

You pay your closing costs associated to the loan. The seller has title insurance, and pro-rates property taxes.

The difference is paid to you in a lump sum, and the money is yours to do with what you want.

If you take out a loan - say a HELCO, than that money is paid direct to you, since you are the one taking out the loan. There a different types of Heloc's. One is the HELCO is paid out all at once in a lump sum. And your payments are based on the lump sum. Another one is a HELCO that say you borrow 20,000 and write a check for 1,000 your payment is based on the 1000.00 amount. BUT you have to have awsome credit to get a HELOC. There is also stand alone 2nd mortgages, if you do not qualify for a HELOC - rates are not as pretty.

Answer 3

Usually the money is paid to whoever is selling whateve it is that you're buying. If you take out a mortgage to buy a home, the money goes to the seller, not you!