When one is planning to borrow a Mortgage Loan, it very essential for him to be familiar with the whole process so that he can know about the issues involved in it as well as the parties involved. This process is difficult and therefore will require other people apart from the borrower since it will be hectic for him to go through alone. The first one who the borrower should interact with is the legal advisor for the appropriate during the borrowing process. A legal advisor is important though he is not a major party as some ignore them and proceed without them.

The borrower / debtor

This is the person who applies for a loan this can be individual or a business man borrowing for his business for further development. He is the one who starts the process and the other parties come after his desire to borrow a loan. When he presents himself for a loan, he gives the reason the desire to borrow, the amount intended to be borrowed and the security for the loan he borrowing. These three determines the kind of the loan he will be offered. A borrower may choose to have a mortgage broker who is also a party to the mortgage loan. This is the intermediary between the creditor and the borrower during the process of securing a Mortgage Loans. The mortgage broker is also used by the banks and other lending institutions to look for the potential buyers at an agreed amount of fee.

The lender/ creditor

This is the party who offers the loan to the borrower. This may be a bank, a credit union or a finance trust organization. The rates depends on various factors such as the security from the borrower, the amount, the current market condition at the time of borrowing and the period the borrower intends to take for the repayment of the loan. The creditors have got various types of loans to offer to the borrowers with different interest rates. When a borrower is unable to repay the loan offered the creditor may possess the property offered as the security for the loan. There are also some private lenders who in most cases are the owners of the house being sold. In the past the lenders used to frustrate the borrowers but this has been reviewed his is now a thing of the past.