What is a Mortgage you may ask? Quite simply, it is a loan that a lender, most commonly a bank, provides to a future purchaser of the following properties: condo, home, commercial property as well as various other forms of Real Estate.
A Mortgage through a financial institution such as a bank, requires good credit and a down-payment to be placed in the form of cash down.
Other various forms of lenders may require a down-payment as well, or possibly a form of collateral in an effort to reduce the amount of risk involved when lending money.
Based on the percentage of the down-payment in relation to the purchase price, an individual or company will be able to assess the maximum amount of money they may borrow in order to purchase said property.
This is all stipulated based on percentages and credit rating. Mortgages represent a lean on the property.
This therefore stipulates that if a default on payment or payments to the lender (Bank or Lender) occurs, the property may be repossessed by the lender or bank and the individual or client who obtained the mortgage on said property will have lost their initial investment, as well as the property and quite possibly face further legal action in various forms.
These outcomes most commonly result in a decrease in one’s credit score, fine or loss of another form of property or asset. Credit is extremely important for many reasons, unless you plan to pay for the property in cash, credit is most commonly obtained through the evaluation of a person’s income, savings and/or assets.
Credit availability, as well as the lump sum taken, is based on and subject to the type of property purchased, as well as the investment or items they wish to finance. Those with a poor credit rating, may have no choice, other than to lease rather than purchase a property.
JPWG has a vast network consisting of relationships with banks, mortgage brokers and facilitators to obtain the needed mortgage for the purchase of a property.