Nature & Cycle of Real Estate Finance

Question 1

Pre-Qualification

Question 2

Loan Processing

Question 3

Funding

Question 4

Economic Cycle

Question 5

Correspondent Lender

Answer 5

Usually smaller in scale than mortgage bankers or brokers, these lenders typically extend loans with their own funds, at their own risk

Question 6

Pre-Approval

Question 7

Underwriting

Question 8

Servicing

Question 9

Mortgage Broker

Answer 9

Middleman between the borrower and the lender, negotiating, selling, or arranging loans to be delivered to larger investors

Question 10

Settlement

Question 11

Origination

Answer 11

process of creating a new mortgage loan including all steps taken by a lender to attract and qualify a borrower

Question 12

Closing

Question 13

Recession

Question 14

Mortgage Banker

Answer 14

Entities which provide their own funds for the purpose of providing mortgage financing, as opposed to commercial banks/savings associations

Question 15

Benefits of Home Ownership

Answer 15

Occupancy
Tax Benefits
Pride of Ownership
Investment
Security

Question 16

Four C’s of Good Lending

Answer 16

Character
Capacity (Current earnings+ job stability)
Capital (sum of all assets)
Collateral