Someone signs loan documents and receives funds to buy a house. That person is the borrower. The borrower promises to repay the lender according to the note and gives the property as collateral through the mortgage or deed of trust.

Lenders evaluate borrowers through credit scores, income documentation, debt ratios, and employment history. A stronger profile usually secures a lower interest rate and better terms. Co-borrowers share responsibility for the debt.

Once the loan closes, the borrower must make timely payments, maintain insurance, and keep property taxes current. Default can lead to foreclosure. Borrowers also have rights under federal and state law regarding disclosures, servicing, and loss-mitigation options.

• Person who receives and must repay a mortgage loan
• Evaluated on credit, income, and debt levels
• Grants the property as collateral
• Responsible for payments, insurance, and taxes