Once you have your consent in principle, you can review properties that fall within your specific price range; That is, the amount you could potentially borrow, plus any deposit you may have saved. Getting pre-approved for a mortgage is not the same as getting a mortgage contract. Pre-approval indicates that the lender is interested in giving money to a home buyer after a high-level valuation. You can choose to further value them, as well as the property, before offering the actual contract. A mortgage is the contract in which a buyer and lender determine the terms of a mortgage, including payment amounts, interest rates, and other terms of the agreement. A mortgage contract is a non-contiguous document that gives the bank the right to pledge the property if the buyer does not make the agreed payments. A mortgage lender is an investor who lends money that is secured by a mortgage on real estate. In today`s world, most lenders sell the loans they make on the secondary mortgage market. When they sell the mortgage, they earn an income called Service Release Premium. As a rule, the purpose of the loan is for the borrower to buy the same property.
As the holder of a mortgage, the lender has the right to sell the property to repay the loan if the borrower does not pay. According to the so-called „provisional theory“ of mortgages, a mortgage is considered a lien on the mortgaged property until an event of default occurs in accordance with the loan agreement. After such a period, the same mortgage is interpreted according to the theory of the title. This is achieved by including a provision in the loan agreement that allows the borrower to retain the right to the secured property, with the express agreement that the lender can forcibly close out of court or out of court if the borrower defaults on the loan. Specific procedures for the seizure and sale of the mortgaged property almost always apply and can be strictly regulated by the government concerned. In some jurisdictions, foreclosure and sale can occur fairly quickly, while in others, foreclosure can take several months or even years. In many countries, the ability of lenders to seal themselves is extremely limited and the development of the mortgage market has been considerably slower. The relatively slow, costly and cumbersome process of judicial foreclosure is a major motivation for the use of trust deeds, as they include provisions for extrajudicial seizures by trustees through „power of sale“ clauses. . .