The lender reviews the documentation and provides a loan package for the loan underwriter for review to ensure all the lender conditions are met.
Mortgage Insurance (PMI)
For a conventional loan, mortgage insurance is required when the down payment is less than 20% of the loan amount. FHA and VA loans also require mortgage insurance or similar protections. VA loans do not require PMI.
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 has completed the loan process and the transaction is “closed.” This normally takes place at a title company with a closing agent.