LESLIE MONACO REAL ESTATE

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:

1. Your lender will provide your loan application along will all of the supporting documentation received to Processing
2. 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
3. Underwriting will make the final loan approval or denial. Once the loan is approved your loan package is sent to Closing
4. Closing will work with the title company closing agent to prepare the final closing documents and HUD-1 statement