SBA Qualification Rate:

The interest rate at which a borrower qualifies for a Small Business Administration (SBA) loan. This rate is influenced by the borrower’s creditworthiness and the prime interest rate.

Net Operating Income (NOI):

The total income generated by a property after deducting operating expenses (excluding debt service and taxes). Formula:

NOI = Gross Operating Income − Operating Expenses

Impound Account:

An account set up by the lender to collect and hold funds for property taxes, homeowner’s insurance, and other related expenses. Also known as an escrow account.

Non-Impound Account:

An arrangement where the borrower is responsible for paying property taxes, homeowner’s insurance, and other related expenses directly, without the use of an escrow account.

VA Closing Costs:

Fees and expenses associated with closing a VA loan, which may include the VA funding fee, appraisal fee, credit report fee, and other standard closing costs.

FHA Closing Costs:

Fees and expenses associated with closing an FHA loan, which may include the upfront mortgage insurance premium (UFMIP), appraisal fee, and other standard closing costs.

Escrow Fee:

A fee charged by the escrow company for handling the closing process, including the transfer of funds and documents.

Title Fee:

Fees associated with the title search and title insurance, which protect the lender and borrower from potential title issues.

Title Insurance Fee:

The cost of insurance that protects against losses arising from disputes over property ownership or lines.

Loan Origination Fee:

A fee charged by the lender for processing a new loan application, typically expressed as a percentage of the loan amount.

Underwriting Fee:

A fee charged by the lender to cover the cost of evaluating and verifying a loan application and the borrower’s financial information.

Processing Fee:

A fee charged by the lender or broker to cover the administrative costs of processing the loan application.

Recording Fee:

A fee charged by the local government to record the mortgage and property ownership documents in the public records.

Notary Fee:

A fee charged by a notary public for verifying the signatures on legal documents.

Environmental Report Fee:

A fee charged for conducting an environmental assessment to identify potential environmental risks associated with the property.