How does buying a house with a mortgage work?
Typically, the home buyer finds a house “on the market” (one that has been listed for sale by a real estate broker, or independently) and makes an offer for purchase. That offer is usually contingent on the buyer qualifying for a mortgage. If the offer is accepted, the buyer applies to a lender for a mortgage. If the buyer qualifies, money is transferred to the home seller and the title to the home passes to the buyer. The home acts as security for the mortgage until it is paid back by the home buyer.