Glossary | U |
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Underwriting |
| Detailed process of evaluating a borrower's loan application to determine the risk involved for the lender. Underwriting usually involves an in-depth analysis of the borrower's credit history, as well as an examination of the value and quality of the subject property. |
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Underwriting Fee |
| A fee charged by some lenders to cover the cost of the lender's analysis of the risk associated with a loan. |
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Undivided Interest |
| An ownership right to use and occupy property that is shared among more than one owner. No single co-owner may have exclusive rights or possession to any part of the property. |
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Unsecured Loan |
| A loan that is not backed by collateral. |
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Upfront Mortgage Insurance Premium |
| FHA charges the borrower an Upfront Mortgage Insurance Premium (Upfront MIP) for most transactions to financially support the FHA program. This fee is a percentage of the principal loan amount and is due at closing. The full amount can be financed as part of the loan amount or paid in cash. |
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