GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Loan Application


Synonyms:applying for a loan, money loan application
Filed Under: financial-banking, mortgages
Tags: banking, mortgage
 

Definition of loan application

loan application
1. 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.

Related Terms and Acronyms:

  • additional property   A property that is owned by the person that is not being financed.
  • low-documentation loan   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   A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
  • mortgage application   A document in which a prospective borrower details his or her financial situation to qualify for a loan.
  • mortgage banker   An employee of a large bank who finds financing for the general public.
  • mortgage brokerage   An individual or group who brokers deals between their clients and lenders.
      ➥  CanEquity is a mortgage brokerage.
  • origination date   The date on which a loan is funded.
  • origination fee   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   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   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.

More Related Terms and Acronyms

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