People who have secured South Carolina mortgages know that the term mortgage or mortgage loan is a home loan acquired from a lender, which may be an individual investor or a financial institution, like a bank. An investor or bank lends the person the cash to buy a new home, and then the borrowed amount is gradually paid back within a specific period of time. This mode of payment is called amortization. The amount is paid with interest, the charge for the use of assets during the time the amount is not yet fully paid for.

Mortgage loan is applied for the transaction of real property – any immovable objects within a specific territory. This includes the land and its features, any natural or artificial water feature and trees, and infrastructure like buildings, wells or dams. Real property is also called real estate; it's different from personal property, which includes movable objects like automobiles, crops or livestock.

A loan specialist assists the borrower in securing the loan. He or she also gathers the information on the borrower and the capacity to pay for the loan. The credit report is a vital criterion; it is the borrower's credit history. Any derogatory items like history of foreclosure, bankruptcy, and debt consolidation can affect the approval of the loan application. However, if the borrower has history of paying for all debts in time, the application will be smooth and easy.

The borrower's debt-to-income ratio is the borrower's capacity to pay for the loan. The borrower's income should be high enough to cover the South Carolina mortgages by the end of the amortization period AND provide for the borrower's other needs. The borrower and loan specialist also determines how this works well with the collateral, the property's value and condition. Together, they also assess whether the property is worth purchasing.

Underwriting is the approval or rejection of the loan application. The borrower and loan specialist collaborate to convince the underwriter to approve the application. The borrower and loan specialist also collaborate with the lender to give the underwriter necessary information to verify the borrower's status and the property value. Meanwhile, the title is acquired from the original owner of the property so the mortgager (borrower) can claim ownership of the property.

The owner secures title insurance while the mortgage lender secures home insurance. Insurance protects the owner and South Carolina mortgages company from any disaster that may come upon the property. In case of disaster, the insurance company will compensate for the damages. Title insurance protects the owner and mortgage company from other claims for the property while home insurance protects the owner from financial burden in case of disaster.