Who is referred to as the lender in a mortgage context?

In the context of a mortgage, the lender is typically the financial institution or broker that provides the funds for the loan to purchase a property. This entity is responsible for assessing the borrower's creditworthiness, determining the loan terms, and ultimately disbursing the money needed for the property purchase. The lender holds the mortgage as a security interest in the property until the borrower repays the loan amount, along with any interest.

Understanding the role of the lender is crucial, as they are central to the financing process in real estate transactions, setting the parameters for borrowing and guiding borrowers through the approval process. This knowledge helps individuals grasp the broader dynamics of real estate financing and emphasizes the importance of the lender's responsibilities in the transaction.