A mortgage certificate is kind of an insurance or guaranty document issued by the loan firm or mortgage company in order to evaluate the value and worth of an applicant and to mention his ability to return the mortgage loan payments. In simple words, when a person applies for a mortgage loan, the loan firm issues a certain statement that this applicant can handle a mortgage under specific amount and it’s okay to issue him that much mortgage amount as loan.
Who issues a Mortgage Certificate?
If you want to have a mortgage certificate that indicates you can handle a certain amount of mortgage with your current income and salary, you need to contact local loan and mortgage firms or banks that issue mortgage and loan certificates. Here, you will be required to present your income proof, bank statements, your expenses and other documents in order to proof that you earn a certain amount of money and you can handle the mortgage that you are applying for. Once, verified by the bank or loan firm, you will be issued the mortgage certificate that you can later use to buy house or an apartment on mortgage.
Introduction to the release of Mortgage Certificate:
When a person approaches a house owner and after putting an offer, asks him to transfer the ownership of the house to him on mortgage payments, the owner has the right to verify if the buyer can handle the mortgage loan payments and if he earns enough to make the periodic installments. In order to verify that, the seller asks the buyer to release his mortgage certificate that is issued by local bank or mortgage firm. After releasing the mortgage certificate, the seller and buyer can enter in a mortgage agreement.
Key purpose of using a Mortgage Certificate:
When a person wants to buy a house from the owner on mortgage loan, he is required to present some kind of proof or guaranty to the owner of the property that he earns enough to make the mortgage loan payments. The mortgage certificate serves as the legal proof or guaranty document to show the worth of a buyer to the owner of a property. When it comes to individuals, they prefer to sell the house on mortgage to the people who can afford to have the house and have enough income to make the periodic installments of the mortgage. When it comes to buying houses and apartments in daily life, a person with mortgage certificate has advantage over the person who doesn’t have a mortgage certificate.
Key elements to include in the release of Mortgage Certificate by Individual:
- Name of the person who owns the mortgage certificate with complete address
- Name of the person and company that is issuing the certificate
- Date when the mortgage certificate is issued to an individual
- Details of the mortgage authorized for the individual
- Registration number of the mortgage certificate for record and verification purposes
- Validation of the certificate
- Signature of the person who issued the certificate
Here is preview of a free sample Release of Mortgage Certificate (By Individual ) created as fillable PDF Form,
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