What does a mortgage typically involve?

A mortgage typically involves borrowing money to finance the purchase of property. This financial instrument allows individuals or entities to obtain the necessary funds to acquire real estate while leveraging the property itself as collateral. When a buyer secures a mortgage, they agree to repay the lender over a specified term, plus interest, which enables them to spread the cost of the purchase over time.

The other options pertain to different aspects of real estate and finance. A lease agreement, for example, pertains to rental arrangements between landlords and tenants, while investment in real estate trusts relates to a way of investing in property without directly owning it. A detailed appraisal is an assessment of a property's value, often conducted prior to securing a mortgage but is a separate step in the buying process. Thus, the central role of a mortgage is as a means of borrowing money specifically to purchase real estate.