Before going to the loan details, let us see, what actually happens in mortgage and what exactly mortgage means. Mortgage is pledging of property (real estate) and mortgage loan is securing loan by pledging the real estate property. The effect of the deal is that, the title of the property (that one intends to purchase or owned) will be transferred to the mortgagee (who lends loan) from the mortgagor (who avails loan). This process involves documentation, which is taken as evidence to the loan amount. Once the mortgage loan is repaid, deal gets cancelled and the mortgagor will get back the title over the property mortgaged. Thus the property mortgaged becomes the security in the deal.

There are many companies that offer mortgage loan, however there may be variations in the amount of loan granted, maturity period of the loan, rate of interest, and mode of repayment of the loan amount. One, who plans to avail this loan, must take into consideration these factors, before going for the loan. There are two classes of mortgage loans, available

1. Residential mortgage

2. Non-residential mortgage.

Residential mortgage is pledging of residential property, for the purpose of availing the loan. Non-residential mortgage involves pledging of commercial property like farm or estate. Loan can be availed for either purchasing a property or it can be availed on the property owned by the mortgagor. However, the property that the mortgagor intends to buy can be used as security for availing the loan. Once the loan amount is repaid, the title of the property transfers or reverts back to the mortgagor. Since the loan is paid against the property, the mortgagee does evaluate the value of the property, to know the actual market value of the property and accordingly, the loan amount will be decided. The mortgagee may be a company or a bank. However the mortgagor must make sure that the mortgagee is a genuine and a reliable one to avoid being cheated.

While evaluating the value of the property, mortgagee will take into account the purchase value of the property intended to be purchased, by availing the loan. In the case of property being owned by the mortgagor, the mortgagee takes into account the market value of the property and the current trend in the market. The mortgagee may appraise or evaluate the property himself or through an official appraiser. The mortgagee usually charges fee for carrying on the evaluation or appraisal of the property.The deal of mortgage just confers a right on the property to the mortgagee. Since mortgage deal is a contract, Law requires that the mortgagor must not be a minor and minors are not entitled to avail loan.

Mortgage loans help in managing urgent need of money, if you own property. You can also bring true your dream of purchasing property, by availing this loan. Owning a home is a deep rooted desire of every human. All humans are not blessed with ready or liquid cash to purchase a house or to make any alterations in the house they own. It is here that the mortgage loan comes to aid in making his dream house come true.