What Is A Mortgage?

What Is A Mortgage?

The dream of owning a house is what everyone aspires. A mortgage is one the steps on the way to your dream. It is a key part of the financial planning of a home owner. 

What is a mortgage? In simple terms, a mortgage which is also known as mortgage loan is an agreement between you and the lender to purchase a house or refinance a house. It is a type of loan often used to buy a home or other property.

In the event of nonpayment of a mortgage, the lender is allowed to seize the property. The loan is secured by the property.

How It Works

Your lender will pay you a certain sum of money to purchase the home when you obtain a mortgage. You consent to repay your loan over a number of years while paying interest. As long as the mortgage is not paid off in full, the lender still has a right to the house. Loans that are fully amortized have a defined payment schedule that ensures the loan is repaid at the conclusion of your term. Hawk Mortgage Group does the heavy lifting so you can concentrate on your life rather than the mortgage loan.

Who Qualifies For A Mortgage?

The majority of people who purchase a home do so with the help of a mortgage. If you cannot pay the full cost of a home out of pocket, a mortgage is required.

When determining whether or not you qualify for a mortgage, lenders first take into account some important factors. To a large extent, your income, employment, debt, credit score, assets, and type of property all affect whether you are approved for a mortgage. 

In our experience with thousands of home buyers that have chosed Hawk Mortgage, our professional team can help you manage the process of qualifying for a mortgage.

How Can You Mortgage A House?

Choosing to buy a house mortgage is a big step. We have a team of professionals ready to walk you through this important financial decision. 

We provide individualized services to make the process easier and provide guidance as you need. With personalized service, our loan experts assist you in getting the best home loan for you and your family. 

The Differences Between A Loan And A Mortgage

In finance, a loan is a sum of money borrowed from a financial institution to meet a variety of objectives or needs and it is agreed to pay the loan back. 

A mortgage is a specific kind of loan which is secured by an immovable property. The house serves as the collateral in a mortgage situation. In a procedure called as foreclosure, your lender may seize possession of your home if you stop paying your mortgage.

1. A loan generally has higher interest rates.
2. A Loan can be secured or unsecured while a mortgage is secured by colloteral.
3. Loan periods are shorter when compared with mortgage.
4. Loan types are open-ended loans, close-ended loans, student loans, payday loans while mortgage loans are VA Loan mortgage, reverse mortgage adjustable-rate mortgage, fixed-rate mortgage.

Hawk Mortgage Group in Bel Air, Maryland is ready to sit down and consult with all potential home buyers, and assist them in deciding the proper path to ownership.  Serving Maryland, Delaware, Pennsylvania, and the DC area, Hawk Mortgage Group will help you to outline the costs associated with purchasing a house and what mistakes to try to avoid.