Hope everyone had a wonderful weekend and got to spend some time with family and friends. Today I will be covering letters M-R of the real estate alphabet
Mortgage : Legal document that promises a property to the lender as security for payment of a debt.
Mortgage broker: A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals.
Original principal balance : Total amount of principal owed on a mortgage before any payments are made.
Owner financing: Property purchase transaction in which the property seller provides all or part of the financing.
Partial payment: Payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan. In most cases, a lender will not accept a partial payment, but in times of hardship you can make this request of the loan servicing collection department.
Pre-approval: In regards to a mortgage, it's when your lender has assessed all your financial information and determined the maximum amount of money you can borrow. There are many advantages to a pre-approval which include; you know how much you can borrow, so you don't waste your time looking at property you can't afford. You save time when you apply for a loan because you already have your paper work and you have an edge when you make an offer, because the seller knows you're more likely to get a loan.
Prepayment: Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure.
Stay tuned, tomorrow I will be finishing off the Real Estate Alphabet!!
-Your friendly neighbourhood Realtor
If you have any questions in regards to Real Estate feel free to contact me at 780-919-0201