What is a Mortgage?
A mortgage is a loan from a bank or lender to help you purchase a house. When you sign a mortgage note, you are agreeing to pay the lender a specific amount of money according to your loan’s specific terms and conditions. The loan is “secured” by the property itself, meaning that if the borrower is unable to repay to loan to the lender, the lender is able to recover some or all of their losses by foreclosing on the property and repossessing it.
Mortgages are highly regulated at the local, state and federal level to protect the borrowers, lenders, and any third parties involved in the transaction. Because of the highly regulated nature of the mortgage industry, the process of obtaining a mortgage is very similar from lender to lender. The mortgage industry is highly competitive; therefore, borrowers are encouraged to shop around to obtain the best interest rates and lowest fees possible.