Definition
Loan Commitment
A loan commitment is a formal written promise delivered by a lender to a borrower for a specified amount of credit or loan for a specified period of time. In …
Loan Amount
The loan amount refers to the amount of money a party has borrowed from a lender, effectively being obligated to repay it in full by law. This is the amount …
Appraiser
An appraiser is a person in the profession of estimating the value of a property using knowledge, experience and skills of real estate valuation. In the …
Amount Financed
Amount financed is a term that describes the actual loan amount that is usable by the borrower after deducting finance charges. These “finance” …
Hypothecation
Hypothecation is a financial arrangement between willing parties whereby a promise of a loan is given should some form of collateral is pledged. In terms of a …
Alternative Documentation
Alternative documentation refers to other documents that a lenders might request from a housing loan borrower should he or she be unable to produce the …
A-Credit
A-Credit is a financial jargon used by lenders to describe borrowers with the best credit profile, than therefore deserves the lowest rates available for a …
Abeyance
Abeyance is a banking and legal terms which describes the act of suspending title to property before the real legal owner of a property can be clearly …
Adjustable Rate Mortgage
Adjustable rate mortgages (ARM) refer to housing loans in which lenders can change the interest rate to be charged to the borrower. This is as opposed to fixed …
Subordination
Subordination occurs when a lien holder agrees to a lower priority claim against the asset (property) which allows another creditor to take it’s place. …
