A mortgagor is an individual or other entity which acquires a loan to finance the purchase of real property. Generally, these property types include, but are not limited to, single family residences, multi-family residences, and condominiums. The mortgagor, for whom the home or property serves as the collateral for the mortgage loan, is responsible for providing evidence of creditworthiness and financial means to be approved by the lender or bank. The mortgagor must also repay the loan as outlined in the loan agreement, including payment of principal and interest.

The mortgagor begins the loan application process by submitting documentation that confirms their ability to secure the loan. This includes supplying proof of income, employment, residence, and other financial documents that demonstrate their ability to make timely mortgage payments. The loan underwriting process will then establish the borrower’s credit score, debt-to-income ratio, and other financial information. Once these criteria have been met, the lender will approve the loan and provide the mortgagor with the available funds.

At the closing of the loan, the mortgagor must provide the required down payment and appropriate closing costs. The mortgagor is responsible for the timely payments of their mortgage loan, including both principal and interest, according to the loan’s terms. If the mortgagor fails to make timely payments, the lender may ultimately be required to commence the foreclosure process.

Mortgaging a home is the largest financial commitment one can make and is not a decision to be taken lightly. Taking the time to review all available options, understand all necessary paperwork and contracts, and familiarize oneself with the terms of the loan agreement are all important steps for a potential mortgagor to consider. Understanding the benefits and responsibilities associated with being a mortgagor can help ensure a successful home loan experience.