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 primary lien is placed by the mortgage lender on the property, meaning first mortgage, on the initial/primary loan for the property. This gives the first right/claim to the home for the lender, in case the borrower defaults on the same. Other lenders with the lien on the home will be secondary ones to the first mortgage lender in this scenario as well.
This is quite applicable in the world of property and real estate. This is mostly used for financing the home buying cost. Borrowers will have to make a down payment. Then they will have to pay the installments for repayment every month, of which there are principal and interest components. The first mortgage is the primary lien which is prioritized over any other secondary mortgage on the property. However, there is only a single exception, i.e. if property taxes are present, then they are payable at the outset, before repaying the primary lender with the first mortgage on the property. There are several requirements for first mortgages as well.
