Underwriting Flashcards
3 c’s of underwriting
credit , collateral , capacity (ability to repay loan )
What is pre-qualification
More of an opinion based on info
What is pre approval
Formal process based on documented info
What is approval letter
borrower has gone through underwriting with all needed docs
What is commitment
written notification from lender that states the terms on the loan
What is lock in agreement
Lender’s promise to hold a certain interest rate and a certain number of points for a borrower - specified period of time
What is constructive notice of title
Legal presumption that anyone can know who is in title
Title search
Searching public records to see there are no liens or judgements against the property
Chain of title
tells who has ownership in the property and determines if there has been flipping
What is payoff
Lender gives exact amt to payoff loan and includes a per diem
What is per diem
daily interest charge
What is satisfaction of mortgage
Lender must file this in county courthouse
- signed by lender and acknowledges mortgage has been fully paid
What subordination agreement
Any lien in 2nd position when borrower wants to refinance their 1st mortgage , must get 2nd mortgage company to agree to leap frog over their lien to be placed in 1st position
Another name for junior lien?
Subordinate
What is foreclosure
Terminating mortgage
