Shauna,
The only built-in word processor is
Text Edit, in your "Applications" folder (accessible from the Finder sidebar, or at the top level of your hard drive). It is a plain text editor, and it will only create files of that type or as "Rich Text." However, it
can open and display many Microsoft Word documents.
You'll need some other solution for any real word processing. One outstanding, and free, alternative to iWork or Microsoft Office is
NeoOffice. NeoOffice is a free open source application designed to duplicate the function of the Microsoft Office suite. It does so very well. It will open any Word documents you may have or come across, and it will save new files in the same format (.doc or .docx). It is completely compatible with Office. Look on versiontracker.com for a free download of NeoOffice.
At the right end of your Menu Bar (at the top of your display), you will see a magnifying glass icon. This is called "Spotlight." Click this icon to open a text entry field. Type your desired search term into this field. The results will display immediately, as you type. If you don't see your target right away in the list, click "Show All." This will open a Finder window with all the results from the search, not just the "top hits."
Scott