Application
The application is actually the beginning of the loan process. The borrower completes a mortgage application with the loan officer and supplies all of the needed documentation for processing.

Processing
The "processor" reviews the credit reports and verifies the borrower's debts and payment histories. If there are unacceptable late payments, collections for judgment, etc., a written explanation will be required from the borrower. The processor also reviews the appraisal and title to be sure everything is in order. The processor's job is to put together an entire package that may be underwritten by the lender.

Underwriting
The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan. If more information is needed, the loan is put into "suspense" and the borrower is contacted to supply more documentation.

Closing
At the closing, the lender "funds" the loan with a wire to the selling party in exchange for the title to the property. This is the point at which the borrower finishes the loan process and actually buys or refinances the house.