The process by which a loan is made, which may include taking a loan application, processing and The process used to determine loan approval. It involves evaluating the property and the borrower’s credit and ability to pay the mortgage.... the application, and The process of completing a financial transaction. For mortgage loans, the process of signing mortgage documents, disbursing funds, and, if applicable, transferring ownership of the property. In some jurisdictions, closing is referred to as “escrow,” a process by which a buyer and seller deliver legal documents to a third party who completes the transaction in accordance with their instructions. See... the loan.