A mortgage is a loan specifically for buying or maintaining real estate, where the property itself acts as collateral. Borrowers must undergo a thorough application process, meeting criteria like minimum credit scores and down payments. Mortgages come in various types, such as fixed-rate or conventional, tailored to the borrower's needs. Mortgages enable individuals and businesses to purchase property without paying the full amount upfront, repaying the loan plus interest over a set period, usually 15 or 30 years. If a borrower fails to make payments, the lender can foreclose on the property, taking ownership to recover the debt. The mortgage process starts with applying to lenders and proving repayment capability, leading to loan offers based on the borrower's financial situation. Pre-approval can strengthen a buyer's position in competitive markets. The process concludes at closing, where down payments are made, and the property changes hands.
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Understanding Mortgages: Basics, Types, and Processes

A mortgage is a loan specifically for buying or maintaining real estate, where the property itself acts as collateral. Borrowers must undergo a thorough application process, meeting criteria like minimum credit scores and down payments. Mortgages come in various types, such as fixed-rate or conventional, tailored to the borrower's needs.

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