Mortgage Process

Definition ∞ The mortgage process involves the sequence of steps required to obtain a loan secured by real estate, typically for purchasing property. This includes application, underwriting, appraisal, legal review, and closing, leading to a legally binding agreement between borrower and lender. It is a complex, multi-party transaction involving significant documentation and regulatory compliance. The process ensures collateral security for the lender and establishes property ownership for the borrower.
Context ∞ In crypto news, discussions around the mortgage process often involve the potential for blockchain technology to streamline or disrupt traditional real estate finance. This includes proposals for tokenizing property deeds, automating escrow through smart contracts, or using decentralized identity solutions for borrower verification. A critical future development involves pilot programs or regulatory sandboxes exploring the integration of DLT into parts of the mortgage process to enhance efficiency, transparency, and reduce costs.