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Heroic Spirits were the first step for a mortal to become a God.
Gods would call the Souls of a mortal they believed was an admirable Hero and would use their Divine Power to change the structure and quality of their souls.
By giving a small piece of their power, the mortal soul would ascend, becoming an immortal soul.
As an immortal soul, the physical body would be not needed, and the former mortal would ascend into a Heroic Spirit.
However, Graham was a lower quality version.
Due to Bestellen not using the complete power needed to ascend a selected hero's soul into a Heroic Spirit, Graham turned into a Familiar Spirit.
A Familiar Spirit was still rather strong and held Divine Power within, however, the potency of its power was not complete.