The purpose of this stage is focus. Discover the context. While we can assume that he said what he meant and meant what he said, the only way to discover what he really meant is by observing the context. While word forms, definitions, and a range of possible meanings may have been noted in the step of observation, it is at the point of interpreting in context that the way the author was using a word is best understood. It is at this point that the Scriptures come alive with the pulse and throb of the author's own heart and intent.
Care is given to distinguish between cultural facts and timeless principles.
Focus is put on the main idea. The Bible can now explode in significance.