Loan Application
Definition
- A document that is filled out by those who want to borrow money. Applicants must provide detailed financial information on the application for the lender to consider before loans are granted.
Synonyms
applying for a loan, money loan application
Related Terms and Acronyms
- Additional Property — Definition,
- A property that is owned by the person that is not being financed.
- Full Income Verification — Definition,
- A requirement for fully documented proof of income; loans of this type usually offer lower interest rates than no-income or "no-doc" verification loans.
- Lead Lender — Definition,
- A financial institution which heads up a financial consortium or syndicate to provide funds for a mortgage.
- Lender — Definition,
- The bank or mortgage company offering the loan.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Loan Application Fee — Definition,
- A cost charged by a lender for processing loan application documents that are submitted by prospective borrowers.
- Loan Commitment — Definition,
- A lender's promise to advance a specific sum on specific terms.
- Loan Processing — Definition,
- The steps taken by a lender to convert a loan application into an approved loan for the potential borrower. These steps include processing the application, conducting a credit investigation, evaluating the loan, etc.
- Loan Term — Definition,
- The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
- Low-documentation Loan — Definition,
- A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
- LPQ Amount — Definition,
- A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
- Mortgage Application — Definition, Very Important,
- A document in which a prospective borrower details his or her financial situation to qualify for a loan.
- Mortgage Banker — Definition, Important,
- An employee of a large bank who finds financing for the general public.
- Mortgage Brokerage — Definition, Very Important,
- An individual or group who brokers deals between their clients and lenders.
➥ CanEquity is a mortgage brokerage. - Origination Date — Definition,
- The date on which a loan is funded.
- Origination Fee — Definition,
- The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.
- Pre-approval — Definition,
- A process that mortgage lenders use to determine how much money they would lend you based on a thorough review of your financial situation. Lenders issue a pre-approval letter which strengthens your position when bidding on a home, as it shows sellers that you will be able to raise funds needed to purchase.
- Pre-qualification — Definition,
- An informal process in which a lender will offer an opinion on how much money you may be able to borrow. This opinion is based entirely on the financial information you provide and is neither binding nor necessarily accurate because lenders have not yet verified your financial information.
- Secured Loan — Definition,
- Borrowed money that is backed by collateral.
