firstquality72 asked:
I am confused a little bit about mortgage. Just say i wanna buy a house, then i’ll go to a bank to loan money to buy that house. That’s called a mortgage, right? But, what i don’t know is whether i will receive cash money from the bank or not? Or the loan for mortgage just shows, OK from now on, i will have a loan with some certain amount of dollars with the bank without i need to have the cash money in my hand. The cash money is the business between the bank and the house’s owner such as the realtor. So, can anyone tell me does the mortgage work like that? Thanks.
KIRBY
I am confused a little bit about mortgage. Just say i wanna buy a house, then i’ll go to a bank to loan money to buy that house. That’s called a mortgage, right? But, what i don’t know is whether i will receive cash money from the bank or not? Or the loan for mortgage just shows, OK from now on, i will have a loan with some certain amount of dollars with the bank without i need to have the cash money in my hand. The cash money is the business between the bank and the house’s owner such as the realtor. So, can anyone tell me does the mortgage work like that? Thanks.
KIRBY
JONATHON
They don’t actually give you the money…you just sign an agreement saying that you will pay the bank, and they send the money directly to the seller.
Comment by Rachel — March 13, 2009 @ 3:11 pm
BLAIR
The money is transferred electronically from your mortgage company to the sellers account or a split between the sellers account and the sellers mortgage company to pay off their mortgage.
The escrow company handles all of this for you. You never really see the money as the borrower.
Comment by Tim — March 16, 2009 @ 12:32 pm
ELLIOTT
No, you don’t get cash in hand. The lender pays the seller – then you have to repay the lender over the term of the loan.
Comment by src50 — March 17, 2009 @ 4:52 pm