Finance Key Terms - Level 1 QUESTIONS WITH WELL VERIFIED
ANSWERS
closing - answer☑️✔️..the consummation of a real estate transaction when all necessary
contracts are signed and the lender disburses the funds of the mortgage loan
correspondent lender - answer☑️✔️..a lender who offers loans using their own money at their
own risk, generally on a smaller scale than mortgage brokers and bankers
funding - answer☑️✔️..the transferring of funds by the lender to a title company or escrow
company so that they may be disbursed
loan origination - answer☑️✔️..the creation of a new mortgage
loan processing - answer☑️✔️..when the lender collects information and an application from
the buyer that will help determine the loan type and amount they will qualify for
pre-approval - answer☑️✔️..official process of being approved by a lender to borrow a
specified amount at an interest rate within a small range; a mortgage application, credit report,
and supporting financial documentation are required
pre-qualification - answer☑️✔️..the first step in determining "how much house" the buyer can
afford and which type of loan might be best; the buyer supplies information about their
financial situation to the lender, who then provides a general estimate
servicing - answer☑️✔️..the ongoing collection of monthly payments and maintenance of
records by a loan servicer
ANSWERS
closing - answer☑️✔️..the consummation of a real estate transaction when all necessary
contracts are signed and the lender disburses the funds of the mortgage loan
correspondent lender - answer☑️✔️..a lender who offers loans using their own money at their
own risk, generally on a smaller scale than mortgage brokers and bankers
funding - answer☑️✔️..the transferring of funds by the lender to a title company or escrow
company so that they may be disbursed
loan origination - answer☑️✔️..the creation of a new mortgage
loan processing - answer☑️✔️..when the lender collects information and an application from
the buyer that will help determine the loan type and amount they will qualify for
pre-approval - answer☑️✔️..official process of being approved by a lender to borrow a
specified amount at an interest rate within a small range; a mortgage application, credit report,
and supporting financial documentation are required
pre-qualification - answer☑️✔️..the first step in determining "how much house" the buyer can
afford and which type of loan might be best; the buyer supplies information about their
financial situation to the lender, who then provides a general estimate
servicing - answer☑️✔️..the ongoing collection of monthly payments and maintenance of
records by a loan servicer
