Get to Know Mortgage

It is good to know that you are eager to brush up on what you know about mortgage. One way of brushing up on your knowledge is to know all the terms that may be involved when dealing with this certain subject. You better believe that there is a lot to be learned here since mortgage is a complex subject that deals with a lot of complex terms. But no need to worry, you will learn all of them in time. Okay, it may take months until you know them by heart but you can continue to read on and get started in knowing the terms that you may encounter while talking about mortgage. More importantly, if you have a mortgage you may be interested that some of these terms may make your mortgage easier to manage. Just check them out and see what you think.

First term on the list is Affordability. This might not be the first time you heard of this word but when used in the context of a mortgage, it points to the ability of the consumer to be able to afford buying a house. This is normally expressed in the terms of what maximum price any consumer can pay for a certain house and also the amount that will be approved so that a mortgage can be made to pay for the said amount. Buying a house is expensive and you need to be realistic about the size of the house you want and at what price you can afford to buy a house. You do not want to overextend yourself and end up with a mortgage that you cannot pay for.

Second term is Agreement of Sale which simple means the contract that is signed by the buyer and also the seller. This contract states all the terms and the conditions which the property was sold under. This piece if paper states all the rules that you abide by once you have signed it. This is considered as a very important legal document and one that is not to be taken lightly by either of the parties involved in the signing.