Home financing refers to the process of obtaining funds to purchase a home. This typically involves a mortgage, which is a loan specifically designed for buying real estate. Borrowers usually make a down payment, which is a percentage of the home's price, and then repay the loan over time with interest. There are various types of home financing options available, including fixed-rate and adjustable-rate mortgages. Lenders assess a borrower's creditworthiness, income, and debt-to-income ratio to determine eligibility and loan terms. Understanding these factors can help potential homeowners make informed decisions about their financing options.