Mortgage lending describes the process of giving loans to people or businesses so they can buy or refinance real estate. Financial institutions that provide mortgage loans to borrowers are known as mortgage lenders. Examples of such institutions include banks, credit unions, and specialized mortgage firms.

These are the main characteristics of mortgage lending:

Borrowers submit a mortgage loan application, outlining their financial situation, employment history, credit history, and the property they wish to buy or refinance.

Prequalification: Lenders evaluate the borrower's financial data to ascertain both their eligibility and the highest loan amount they are likely to be approved for. Understanding their affordability and possible loan options is made easier for borrowers with prequalification.