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 home or property, and in return, they agree to repay the loan over a specified period, usually with interest. The property itself serves as collateral, meaning if the borrower fails to repay, the lender can take possession of the property. Lenders assess a borrower's creditworthiness, income, and debt-to-income ratio before approving a loan. Common types of mortgages include fixed-rate and adjustable-rate mortgages, each with different terms and interest rates. Understanding these options helps borrowers make informed decisions.