Arbor Financial Group Marketing Engines, Inc.

Glossary of Terms

Mortgage. Real Estate & Insurance

G

Garnishment
Notice to an employer or other asset holder that monies, wages, or property of a debtor must be applied to a specific debt or creditor.
General Liability Insurance
This covers damage to other party's property or another person due to construction-related project accidents.
General Partner
Co-owner(s) of a venture liable for all debts and other obligations of the venture as well as for the management and operation of the partnership. The general partner can have control of the business and can take actions that are binding on the other partners.
Generally Accepted Accounting Principles (GAAP)
Accounting practices that are in widespread use because of convention and tradition, and those that are specifically mandated by recognized rule-making authorities.
Gift Funds
Outright gift of funds from an acceptable source. Documentation of transfer of funds must be included in the file, as well as a gift letter stating no repayment is required. Gifts from parties with an interest in the sale of the property are considered sales concessions, must be subtracted from the sales price, and may not be considered assets to close.
GIFT LETTER
A letter to the lender from the donor stating a gift of money has been made to the buyer in order to purchase specific property. The relationship of the donor and donee is stated, as well as the amount of the gift.
GNMA
Government National Mortgage Association.
Good Faith Estimate (GFE)
The Good Faith Estimate is the written estimate of the settlement costs that the borrower will likely have to pay at closing of the loan. Under the Real Estate Settlement Procedures Act (RESPA), the borrower is required by law to receive a Good Faith Estimate from the mortgage lender within three days of the home loan application date. The settlement costs disclosed in your Good Faith Estimate cover every expense associated with the mortgage loan, including escrow, title insurance, inspections, taxes and more. Additional costs may apply depending on the state of residence, mortgage loan product, points and fees, down payment amount, etc...
GRACE PERIOD
The period of time between the contractual due date and the date a late charge will be assessed.
GRANDFATHER CLAUSE
The clause in a law permitting the continuation of a use, business etc., which, when established, was permissible but, because of a change in the law, is now not permissible.
GRANT DEED
A written instrument used to transfer or convey real property. A grant deed contains warranties against prior conveyances or encumbrances.
Grantee
The Grantee is the party to whom the title to real property is conveyed. Or a Person to whom an interest in real property is conveyed.
Grantor
Person conveying an interest in real property.
Greenbelt
Forests, woods, parks, or fields surrounding or enclosing urban area.
Gross Area
Total floor area of a building, except that of unenclosed areas, measured from the outside of the exterior walls.
Gross Income
Total income before any expenses are deducted.
GROSS INCOME (BUSINESS)
The total income earned, either actual or estimated, from a business or property.
GROSS MONTHLY INCOME (BORROWER)
The total amount the borrower earns per month, before any expenses are deducted.
GROSS RENTAL INCOME
The monthly rental income received before mortgage payments, taxes and insurance are deducted.
Gross Rent Multiplier
Figure used to compare rental properties. It gives the relationship between the gross rental income and sales price. Also known as gross income multiplier.
Ground Lease or Rent
Lease of land alone, as distinguished from a lease of land with improvements on it, usually on a long-term basis.
Ground Rent
Amount of money paid for the use of land when title to a property is held as a leasehold estate, rather than as fee simple.
Guaranty
Obligation of the United States to repay a specific percentage of a loan upon default of the primary debtor.