Real Estate Term of the Day: Loan Origination, Loan Processing & Underwriter
LOAN ORIGINATION – the process of making a new loan from marketing to closing (Barron’s Dictionary of Real Estate Terms)
LOAN PROCESSING – the steps a lender takes in the loan approval process, from application for a home mortgage through to closing (Barron’s Dictionary of Real Estate Terms)
UNDERWRITER – one who insures another or takes certain risks. In mortgage lending, the one who approves or denies a loan based on the property and the applicant (Barron’s Dictionary of Real Estate Terms)
Below are the steps in the loan review process:
- Your lender will provide your loan application along will all of the supporting documentation received to Processing
- Processing will review all of your supporting documentation that was provided and request any missing documentation from you. Processing will then provide your loan package to Underwriting
- Underwriting will make the final loan approval or denial. Once the loan is approved your loan package is sent to Closing
- Closing will work with the title company closing agent to prepare the final closing documents and HUD-1 statement
