What Are Home Loans and Mortgages?
Although the terms “home loans” and “mortgages” are often used together, they are not the same thing. Many people mistakenly believe that home loans and mortgages are the same thing, but they are entirely different, even though they go hand in hand with each other. Home loans are the financial transaction of borrowing money to buy a home or borrowing money for some other reason and using your home or property as the collateral. Let’s use a hypothetical situation where you’re going to buy a home. You’ve found the home of your dreams but now you need the money to buy the home. You go to your local bank or lender and fill out an application for a loan to purchase your home. After a certain procedure is completed and you’re approved, you’ll sign the loan documents and the bank will give you the money to buy your home. The documents you’ve signed with the bank, promising to pay back the money they’ve borrowed you with certain agreed upon terms are the loan documents or, what some may call,
