Mortgage lending is the process by which financial institutions provide loans to individuals or businesses to purchase real estate. The borrower receives funds to buy a property and agrees to repay the loan over a specified period, typically with interest. The property itself serves as collateral, meaning the lender can take possession if the borrower fails to repay. Lenders assess a borrower's creditworthiness, income, and debt-to-income ratio before approving a mortgage. Different types of mortgages, such as fixed-rate and adjustable-rate mortgages, offer various terms and interest rates, allowing borrowers to choose the option that best fits their financial situation.