Is a Mortgage the Same Thing as a Home Loan?
The public uses several financial terms interchangeably such as finance and accounting. Others are not as obvious including mortgage and home loan. Both describe debt products that help applicants complete real estate transactions. When you dig into the nuance of each term, each has a purpose.
For example, mortgages help homebuyers finance a home purchase. On the other hand, home loans help owner-builders and investors finance real estate construction projects. To avoid confusion among the different entities involved in real estate transactions, lenders have developed specific debt products. Investors and owner-builders interested in constructing a new property from scratch will apply for a Mortgage House construction home loan. First-time homebuyers who have decided to become homeowners can apply for Mortgage House conventional, family, and guarantor mortgages.
When homebuyers, owner-builders, and investors apply for a real estate-related loan, the application will make it clear to the loan specialists. Keep in mind that applying for the correct product is important. Otherwise, the applicant risks rejection. Mortgage House works with an array of clients including those with less than stellar credit scores. It’s always possible to improve the loan terms down the road when your financial circumstances improve too.
Keep in mind that you can also obtain a Mortgage House car loan.
Mortgage and Home Loan Definition Conclusion
When you speak with a loan specialist and use the terms mortgage and home loan, they will understand that you’re seeking financing for a real estate transaction. Once our Mortgage House team starts evaluating the application, they will find out if you’re seeking to purchase a home, build one, or invest in one. Contact our team today.