why do people need mortgages 
the price of a home is often far greater than the amount of money that most households save as a result mortgages allow individuals and families to purchase a home by putting down only a relatively small down payment such as 20 of the purchase price and obtaining a loan for the balance the loan is then secured by the value of the property in case the borrower defaults can anybody get a mortgage mortgage lenders will need to approve prospective borrowers through an application and underwriting process home loans are only provided to those who have sufficient assets and income relative to their debts to practically carry the value of a home over time a person s credit score is also evaluated when making the decision to extend a mortgage the interest rate on the mortgage also varies with riskier borrowers receiving higher interest rates mortgages are offered by a variety of sources banks and credit unions often provide home loans there are also specialized mortgage companies that deal only with home loans you may also employ an unaffiliated mortgage broker to help you shop around for the best rate among different lenders 