Loan Commitment

A loan commitment is a lender’s promise to offer a loan or credit of a specified amount to a borrower. Also called a commitment letter,

Life Cap

A life cap, or lifetime cap or rate cap, is the maximum amount that a borrower’s interest rate can increase over the term of the

Line of Credit

A line of credit, also known as a credit line, is an open-ended, revolving loan that a borrower may access on demand. The lender determines

Housing Expense Ratio

A housing expense ratio is the comparison of a borrower’s before-tax income. The number often is calculated when lenders are deciding whether an individual qualifies

Hard Inquiry

A hard inquiry, also called a hard pull, is a type of credit check done to determine an applicant’s creditworthiness. It results when a consumer

Full Recourse

Full recourse is a state in which a debt obligation is owed regardless of the borrower’s personal and financial situation. With full recourse, the lender

First Mortgage

A first mortgage is the primary loan on a property. A first mortgage has priority over any other claim on the property’s title in the

Excellent Credit Score

A credit score is a number that is based on a statistical analysis performed by lenders and financial institutions that indicates a person’s ability to

Draw

A draw is a payment taken from construction loan proceeds made to material suppliers, contractors and subcontractors. That means the borrower doesn’t have to pay

Delinquent Mortgage

A mortgage becomes delinquent when the borrower doesn’t make the required payments. If the borrower continues to fall behind, the lender may foreclose on the

Homeowner Education