The mortgage industry involves the process of lending money to individuals or businesses to purchase real estate. A mortgage is a loan secured by the property itself, meaning if the borrower fails to repay, the lender can take possession of the property through a process called foreclosure. Lenders, such as banks and credit unions, assess a borrower's creditworthiness and financial situation before approving a mortgage. The terms of the loan, including interest rates and repayment periods, can vary widely, impacting the overall cost of homeownership for borrowers.