What is the term for the process through which a buyer obtains a mortgage loan from a lender?

The correct term for the process through which a buyer obtains a mortgage loan from a lender is "loan origination." This process encompasses all the steps a borrower takes to apply for a mortgage, including submitting a loan application and providing the necessary documentation for the lender to assess risk and determine eligibility.

Loan origination is a critical phase as it involves the lender's assessment of the borrower's creditworthiness, the appraisal of the property, and the final decision to either approve or deny the loan request. This process is not limited to just the act of applying for the loan; it covers the entire path from initial inquiry to the funding of the loan.

The other terms listed, like loan application, pertain to specific aspects of the origination process rather than the overall procedure itself. Loan approval specifically refers to the lender's decision on whether to grant the loan after reviewing the application, while loan servicing relates to managing the loan after it has been issued, such as collecting monthly payments. Understanding the distinction between these terms is crucial for comprehending the mortgage process in real estate.