Mortgage Lending in Texas
A mortgage is the conveyance of a property, or the temporary transfer of your ownership rights, as security for a debt. The transaction is on the understanding that upon payment of that debt within a specified time, ownership is reconveyed to you. If you fail to pay the debt, or do not comply with the lender’s rules, then the property can be sold. Your loan is repaid in full from the sale proceeds, and any residue is paid to you, the borrower.
This system functions effectively because you own a little piece of Texas. Your registered title deed defines the location and legally establishes proof of that ownership. And land ownership, over which a lender can register his interest, is the basis of mortgage lending. Or home loan lending.
And because a lender can sell the property and recover his money if the loan is in default, home mortgage loans have the lowest interest rates and the best conditions. Even when the money is used for other things. Like holidays, boats and cars. As long as property is used as security. Then, these loans are called home equity loans.
Now Texas is the only State that was a republic before joining the Union. Before that, as Coahuilia-Texas, Texas was a province of Mexico and before that a part of the Spanish empire. Yes, and prior to that the French also claimed ownership of a vast area that included the lone star state. And all these events happened relatively recently.
This history is important because all land ownership in the United States is predicated on a sovereign country’s initial claims. I claim this land for England or I claim this land for Spain or France is a familiar refrain to everybody.
Now during the early 1800s, when Texas was part of the Spanish Empire, expansion south by land-hungry American settlers had created opportunities for men like Stephen Austin. Austin gained permission from Spain’s representatives to establish communities, with property rights, in fertile areas of Texas. He then sold small farms lots to pioneering northerners hungry for land.
The Spanish authorities saw this as a way of inhabiting the vast territory with friendly colonists before French expansion from Louisiana, to the East, established competition for sovereignty.
Austin was successful but before the American settlers arrived, Mexico had established independence from Spain. In expelling their Spanish conquerors the Mexican Government also reclaimed Texas as a part of their sovereign territory. Undaunted, Austin traveled to Mexico City and convinced the authorities there to endorse the rights he had been given by Spain.
Others, now known as empresarios, followed in Foster’s footsteps, and soon hundreds of pioneering farming families from the United States had settled in Texas. They were soon joined by traders and townsfolk who provided the services. By 1820 there were thriving farming communities of hardworking Americans in many parts of Texas. Rights to the land were often in the form of a title given to them by the land agents, or empresarios, who had a master agreement with the Mexican authorities. Sometimes, the only proof of ownership, or title deed the settlers had was this scrip from the empresario. These instruments became, for many parts of the state, the first link in the chain of title or ownership.
Although Coahuilia-Texas was sparsely populated in 1820 the Mexican inhabitants clashed with the new settlers, over many things, including religion. Tensions increased and war between the new settlers and Mexico broke out. Following the oft-told tale of the settler’s victory in 1836, followed by a period as an independent Republic, Texas joined the Union in 1845. Although the vast majority of the State was uninhabited and designated public lands in 1850, it was not handed over to the Federal Government on entering the Union. Instead, ownership was retained by the State. In exchange for this concession from Washington, vast tracts of territory, that had originally been a part of the Mexican and Spanish claim, were given to the Federal Govt. by The Republic of Texas. Parts of Wyoming, Arkansas, Oklahoma and Kansas had all been a part of The Republic of Texas and were relinquished under what is known as the 1850 Compromise. As the new State of Texas released or sold or leased public lands to private interests, a new and unique link in a title chain was established.
So there are differences in Texas. Differences in the history of land ownership, that can make mortgage lending here in the LONE STAR STATE unique. So unique in some instances, that a home mortgage loan is only available from a local bank or lender.
So contact us about mortgage lending in Texas. We have the best rates, the local knowledge and the relationships to get you the best deal.