Your local mortgage companies finance its customers' property. This property can be a home, car, piece of land or anything of this nature. Local mortgage companies look after the payment of these properties. It is because of these local mortgage companies that customers are able to purchase the property. They can then repay these local mortgage companies via monthly payments that include any applicable interest, taxes and insurance. Local mortgage companies have truly helped the real estate market. This is because before the existence of your local mortgage companies you would not have been able to buy any expensive property if you couldn't pay for it completely out of your own pocket. However, now, thanks to your local mortgage companies you can purchase as big of a property as you want and then simply pay it back over the course of time. With this being said, you should also know that those properties that use to be thought of as being unaffordable have now become a lot more affordable thanks to your local mortgage companies. Essentially, your local mortgage companies actually boost your buying capacity. It is important to understand that local mortgage companies do have a certain set of pre-requisites that you must meet in order to obtain a mortgage. This means that your finances will be scrutinized in order to make sure that you will be able to make payments. Of course, your credit will also be reviewed. However, some of your local mortgage companies may make mortgages available to those who have bad credit but at a higher interest rate. Most mortgage companies will also hold onto your property deed as a form of collateral until you have completely repaid your mortgage. This is especially true if you happen to have bad credit.