Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
The down payment or deposit is the up-front or initial sum or part-payment for buying anything like a home or vehicle, while taking credit to purchase the same. This could be the down payment for a loan or mortgage as well. This is sometimes paid in cash or even through cheques, while the transaction for property transfer/ownership/purchase and transactions for any other assets are finalized. The down payment is the starting point for any real estate or property transaction as well. The down payment lowers the lending risks of the lenders or financial institutions. The higher the down payment, the more favorable the terms and conditions of mortgages and loans.
Down payments are indispensable for real estate purchases/transactions which are done through loans or mortgages. This is usually 5-20% of the value of the property or the price of purchase. The remainder is sanctioned by the financial institution or lender for this purpose.
