When you decide to take out a loan against your property, it's essential to comprehend the key documents involved in the process. These documents play a vital role in protecting both the borrower and the lender.
Loan Agreement: This legal document outlines the terms and conditions of the loan, including the interest rate, repayment schedule, and any collateral requirements.
Mortgage Deed: A crucial document that establishes the lender's legal claim to the property until the loan is repaid in full. Once the loan is paid off, the property title is transferred back to the borrower.
Promissory Note: It's a written promise to repay the loan, specifying the amount borrowed and the terms of repayment.
Property Appraisal Report: This document assesses the property's value, helping determine the loan amount.
Title Deed: This document proves your ownership of the property and is temporarily held by the lender until the loan is cleared.
Understanding these loan-on-property documents is essential to ensure a transparent and successful borrowing experience.