Before you start looking at different mortgages and mortgage lenders, you should first understand what a mortgage is, how it works, and who is involved.
Mortgages are just ways to use your property or real estate as a guarantee that you will pay back a debt. The word "mortgage" comes from the French word for "death vow." It means the legal way that the property is kept safe, but most of the time it means the debt that is kept safe by the mortgage. In other words, people often use the words "mortgage" and "mortgage loan" interchangeably.
Nearly everywhere, mortgages are loans on real estate, not other things like boats. Land that hasn't been built on can also be mortgaged. When someone or a business gets a mortgage, it just means that they are using the standard way to buy commercial or residential property without having to pay the full price right away. So, there are residential mortgages and business mortgages that are given out regularly all over the world.
People and businesses are much more likely to look for mortgages and mortgage lenders when they want to buy real estate than to pay the full price for the property on their own. Mortgages are the way of the world these days. The United States, the United Kingdom, and Spain have the most mortgages because they have the most people who want to buy homes.
Even though there are some differences because of language and slang, the two main people in a mortgage are the creditor and the debtor. The creditor is the person or financial institution that gives you the money you need to buy the house or other property. A mortgage gives the creditor legal rights to the debt that is being paid back. Most of the time, the debtor gives the debtor the money needed to buy the property. Most of the time, banks, insurance companies, or other financial institutions like credit unions are the ones who lend money for mortgages. The other names for these types of creditors are mortgagees and lenders.
The person who gets a mortgage loan to buy a house is the debtor. The debtor is the new owner of the house. During the life of the loan, the debtor has to follow the mortgage lender's financial rules and requirements to keep the mortgages from being cancelled and the property from being taken back by the lender. These people who owe money are also called mortgagees, borrowers, or obligors.
Attorneys will often get involved in mortgage disputes as well, usually representing the debtor. Depending on where they are, they may be called the conveyance or solicitor instead.
A mortgage process might involve a mortgage broker. This professional is not licenced or employed by just one mortgage or banking firm. Instead, he or she knows a lot about many of them and is responsible for searching and comparing many mortgage firms and options to find the best mortgage deal for the person who wants to borrow money. The mortgage broker may also be a certified financial advisor, or the debtor may hire one to help them find the best mortgage options and the best loan at the best price.
