How to underwrite a loan file

Does it vary from one lender to the next, or is it pretty standard across the board? It's the final and most intensive examination of your mortgage application package.

How to underwrite a loan file

Capital expenditure The cost of an improvement made to extend the useful life of a property or to add to its value. Capital improvement Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.

Cap A provision of an ARM limiting how much the interest rate or mortgage payments may increase. Cash Out A loan transaction in which the borrower receives funds at the time of closing.

The Source of Underwriting Guidelines

Cash-out refinance A refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy any outstanding subordinate mortgage liens. Certificate of deposit A document written by a bank or other financial institution that is evidence of a deposit, with the issuer?

Certificate of Eligibility A document issued by the federal government certifying a veteran? Certificate of Title A certificate issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property, which he is offering for sale.

A certificate of title offers no protection against any hidden defects in the title, which an examination of the records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence. The protection offered a homeowner under a certificate of title is not as great as that offered in a title insurance policy.

Chain of title The history of all of the documents that transfer title to a parcel of real property, starting with the earliest existing document and ending with the most recent. Chattel Another name for personal property. Claim An amount requested of an insurer, by a policyholder or a claimant, for an insured loss.

Clear title A title that is free of liens or legal questions as to ownership of the property Closing The occasion where a sale is finalized; the buyer signs the mortgage, and closing costs are paid.

Closing Day The day on which the formalities of a real estate sale are concluded. The certificate of title, abstract, and deed are generally prepared for the closing by an attorney and this cost charged to the buyer.

The buyer signs the mortgage, and closing costs are paid. The final closing merely confirms the original agreement reached in the agreement of sale. Cloud On Title An outstanding claim or encumbrance, which adversely affects the marketability of title. Co-Borrower An additional borrower on a loan.

Coinsurance A sharing of insurance risk between the insurer and the insured. Coinsurance depends on the relationship between the amount of the policy and a specified percentage of the actual value of the property insured at the time of the loss.

Coinsurance clause A provision in a hazard insurance policy that states the amount of coverage that must be maintained — as a percentage of the total value of the property — for the insured to collect the full amount of a loss.California Department of Real Estate FAQ - Permissible FHA Loan Processing Activity Q: What are the requirements of employees of FHA lenders?

A: An FHA lender may employ staff full time or part time (less than the normal 40 hour work.

how to underwrite a loan file

A payday loan (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) is a small, short-term unsecured loan, "regardless of whether repayment of loans is linked to a borrower's payday." The loans are also sometimes referred to as "cash advances," though that term can also refer to cash provided against a prearranged line of credit such as.

Pay no interest! Are you part of a household considered in-need? If so, then you may apply and be awarded college school funding aid. Florida Housing Finance Corporation (FHFC) ! THE FL HFA PREFERRED CONVENTIONAL LOAN PROGRAM!! Lender Guide Published Program Updates on Page 3.

How to read & understand an insurance policy. We know. Reading an insurance policy isn’t exactly like curling up with a good book. It’s a fairly complex document that tries to explain all the things you’re covered for, and what’s excluded when a loss occurs.

These disturbing facts about arson investigation are among the principle reasons interFIRE was created and underscore why effective underwriting practices are critical for the protection of property insurance companies.

The Mortgage Underwriting Process Explained