The financial institutions such as commercial banks, savings and loan associations, mutual savings banks and life insurance companies that act as an intermediary or go-between for savers and borrowers by selling its own obligations for money and, in turn, lending the accumulated funds to borrowers in the form of real estate loans.
The use of another party’s, which is typically a lending instution’s, money to buy something which in real estate is property. The following are examples of financing:
The amounts used to pay the costs of acquiring real estate such as interest on all loans, ground rent for leased land. Loan principal payments reduce the debt, so technically they are not expenses. Contrast Operating expenses. Example: Florence owns both units of a duplex, each financed with a separate mortgage. She lives in one unit and rents the other. From the $2,000 monthly rent received from her tenant, Florence has to pay, financing expenses (interest on both mortgages) and operating expenses.
The systematic five-step procedure followed by major institutional lenders when analyzing a proposed loan: 1. Application filed by a borrower; 2. Analysis of borrower and property by lender; 3. Processing of loan documentation; 4. Closing (funding) the loan; and 5. Servicing through collection and recordkeeping..
An instrument filed in order to give public notice of a security interest and which protects the interest of any secured parties in the collateral. See Security interest and Secured party
A monetary payment which is prohibited or limited in most states to a party who locates suitable property or a purchaser who is other than a licensed broker. Example: Broker Abel has a listing on a particular property. Baker knows several people interested in such property. Abel arranges with Baker to provide a finder’s fee should one of the prospects identified by Baker purchase the property
1. An unqualified written promise as to under what specified terms and conditions a lender will lend money. 2. A commitment assumed by the FHA to insure a mortgage of a specified mortgagor;
A legal document that is pledged as collateral for a loan that was recored first giving it first priority and will be superior to all other liens or claims against the property except for taxes and bonded indebtedness. See Mortgage..
See Right of first refusal..
See First mortgage.
