The form on which the borrower supplies the lender’s required information to determine if the applicant is qualified to receive a loan. It normally identifies the property involved and details the applicant’s income, expenses and assets. Credit and property value are determined separately by a credit report and appraisal.

See: Mortgage Broker.

See: Commitment (2).

The yearly percentage of interest which remains the same over the life of an amortized loan, based on the monthly payment in relation to the principal originally loaned. For example: A $1000 loan at 9% interest for 20 years can be amortized at $9.00 per month. A constant interest rate is figured by finding one year’s payments ($9.00 X 12 months = $108.00), and expressing this amount as a percentage of the principal originally borrowed (10.8% of $1000).

A one time set up fee charged by the lender.

The file of all items necessary for the lender to decide to give or not give a loan. These items would include the information on the prospective borrower (loan application, credit report, financial statement, employment letters, etc.), and information on the property (appraisal, survey, etc.). There may be a charge for “packaging” the loan.

A title insurance policy insuring a mortgagee, or beneficiary under a deed of trust, against loss caused by invalid title in the borrower, or loss of priority of the mortgage or deed of trust.

The bookkeeping and collection of a loan. It may be done by the lender or by another for the lender.

The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property. Usually, the higher the percentage, the greater the interest charged. Maximum percentages for banks, savings and loans, or government insured loans, is set by statute.

An open area immediately inside a building entrance. Most commonly associated with hotels and theaters.

City, county, or other governing body at a level smaller than a state. Local government has the greatest control over real property.

The geographical position of real property in relation to its intended use. It is impossible to have a good or bad location without knowing the intended use.

A small container attached to a listed property that contains the keys to enter the property, allowing real estate agents to show the property when no one is at home. The modern box is computerized and records the identity of the agent and time of entry. A code is used to enter the box.

(1) A guaranteed interest rate provided the loan is funded within an agreed upon period. (2) The prohibition against prepayment of a loan for a set period of time. The borrower is “locked in” to the mortgage for this period.

The time during which a loan rate is guaranteed not to change or a loan cannot be paid off. See: Lock-In.

See: L.S..

A seldom used term meaning a temporary place to stay (lodge).

A building containing an attic-like upper floor, usually open (without partitions).

Gain on the sale of a capital asset which has been held for a specified time or longer. Long term capital gain is taxed at a special rate and not as ordinary income.

A mortgage or deed of trust for a term of ten years or more, as distinguished from constructions loans or interim loans.

A general term which may refer to a lease 10 years or longer in term, or in some areas, 5 years or longer.