A mortgagor is an individual or entity that borrows money from a lender to purchase real estate and uses the property as collateral for the loan. The mortgagor is also known as the borrower in a mortgage agreement. They are responsible for making regular payments to the lender until the loan is paid off in full.
Mortgagors must meet certain criteria to qualify for a mortgage, including having a good credit history, stable income, and a down payment. The terms of the mortgage agreement, such as the interest rate, loan amount, and repayment schedule, are negotiated between the mortgagor and the lender before the loan is finalized.
In the event that the mortgagor defaults on the loan, the lender has the right to foreclose on the property and sell it to recoup their losses. It is important for mortgagors to understand their financial responsibilities and carefully consider their ability to make timely mortgage payments before signing a mortgage agreement.