The evaluation of a property's market value by a qualified professional.
What is a home appraisal?
100
The term for a borrower's available funds that can cover mortgage payments during an interruption of income.
What are reserves?
100
This is a detailed record of an individual’s financial history
What is a credit report?
100
The name for the document that verifies a borrower's assets and source of funds for the down payment and closing costs.
What are bank statements?
200
The cost of borrowing money for a home expressed as a percentage.
What is a mortgage interest rate
200
The ratio that compares the amount of the mortgage loan to the appraised value of the property.
What is the loan-to-value (LTV) ratio?
200
The term for the process when a human underwriter reviews all aspects of a borrower's application, which is more common for complex financial situations.
What is manual underwriting?
200
The three-digit number that underwriters use as an initial indicator of a borrower's creditworthiness.
What is a credit score?
200
This type of asset includes retirement accounts and real estate equity.
What are Non-Liquid Assets?
300
This rapidly growing powerhouse of a mortgage company that is becoming the envy of the mortgage industry started in 2018 with only one employee
What is Cake Mortgage?
300
This is a real estate transaction where there is a pre-existing relationship between the buyer and seller.
What is a non-arms-length transaction?
300
This document tells the borrower’s story and is used by the underwriter to assess the borrower’s risk profile.
What is the 1003 (URLA)
300
Major financial events like these, depending on how long ago they occurred, can prevent a borrower from qualifying for a mortgage.
What are bankruptcies or foreclosures?
300
This is a form of stock-based compensation that can be used to qualify for a mortgage.
What are Restricted Stock Units?
400
This person acts as an intermediary between borrowers and lenders
What is a Broker?
400
An appraisal that uses an analysis of comparable properties with adjustments to determine the subject value uses this approach.
What is the Sales Comparison Approach
400
You can find any special assessment for an infrastructure on this document
What is a Tax Certificate?
400
This key component on a credit report is used to analyze recent credit-seeking behavior
What are inquiries?
400
The length of time a single account statement must cover
What is one month?
500
The process a lender uses to evaluate a borrower's financial risk and creditworthiness to decide whether to approve a home loan.
What is Mortgage Underwriting?
500
A property that wholly occupies at least 1 lot and has an HOA
What is a PUD?
500
This allows a Non-Permanent Resident Alien without an SSN to qualify as an eligible borrower.
What is ITIN?
500
This type of account is underwritten using the full balance in ratio calculations or what is required exclude the payment?
What are Open 30-day Charge accounts and must provide sufficient assets to cover the balance.
500
This account may be used for down payments and closing cost but not for reserve requirements