Real Estate Term of the Day: Loan-To-Value (LTV) Ratio LOAN-TO-VALUE (LTV) RATIO – the portion of the amount borrowed compared to the cost or value of the property purchased – that is, mortgage debt divided by the value of the property. Lenders are often constrained as to the maximum loan-to-value ratio on loans they originates … More Real Estate Term of the Day: Loan-To-Value (LTV) Ratio

Real Estate Term of the Day: Loan Origination, Loan Processing & Underwriter LOAN ORIGINATION – the process of making a new loan from marketing to closing (Barron’s Dictionary of Real Estate Terms)  LOAN PROCESSING – the steps a lender takes in the loan approval process, from application for a home mortgage through to closing (Barron’s Dictionary of Real … More Real Estate Term of the Day: Loan Origination, Loan Processing & Underwriter

Real Estate Term of the Day: Loan Commitment LOAN COMMITMENT – an agreement to lend money, generally of a specified amount, at specified terms at some point in the near future (Barron’s Dictionary of Real Estate Terms)  Below is a brief guideline of the loan process: You submit the completed loan application and any required supporting documentation … More Real Estate Term of the Day: Loan Commitment

Real Estate Term of the Day: Loan Application LOAN APPLICATION – document required by a lender prior to issuing a loan commitment. This application usually includes: 1. name of borrower, 2. amount and terms of loan. 3. description of the subject property to mortgaged and 4. borrower’s financial and employment data (Barron’s Dictionary of Real Estate Terms)  According to … More Real Estate Term of the Day: Loan Application