I have a very elementary (and possibly dumb) question ,that I'm afraid to go into a bank and ask because I may be laughed out of one.
I've been hearing alot of property buying lately, can someone explain to me how exactly does a "mortgage" work?
For example, say I buy a house of $300,000, and take out a $200,000 mortgage. I understand the $200,000 is a "loan" and has to be paid back to the bank in installments. I have a few additional questions:
1) How does the bank pay the seller? Or does the bank give me the money directly (ie. the $200,000, maybe in a cheque?) and I pay the seller directly?
2) Isn't this complex to arrange?
3) Where does the Real Estate Agent come in in all this? Does he act as a representative, and give the money to the seller for me? Does he have anything to do with the mortgage?