A mortgage loan is specifically used for the purchase of real estate. It's the largest, most important purchase in one's life and will cost the highest, affect lives the most. As a first-time home buyer, understanding how the process works and what you should expect is crucial to making informed decisions. Your mortgage is a loan that borrows money from a lender and uses it to buy real estate. Loans can be customized with various terms. With the help of your lender, you'll find a mortgage loan that best fits your needs.