The lender gathers information about the income and debts of the borrower and makes a financial determination about how much house the borrower may be able to afford. 

The buyer completes a mortgage application with the loan officer and supplies all of the required documentation for processing. At this time the buyer will receive his good faith estimate.

The "processor" reviews the credit reports and verifies the borrower's debts and payment histories as the VODs and VOEs are returned.

The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan.

Mortgage insurance underwriting occurs when the borrower has less than 20% of the loan amount to put towards a down payment. At this time, the loan is submitted to a private mortgage guaranty insurer, who provides extra insurance to the lender in case of default.

During this time the title insurance is ordered, all approval contingencies, if any, are met, and a closing time is scheduled for the loan.

At the closing, the lender "funds" the loan with a cashier's check, draft or 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 the house.