Glossary of Terms
Mortgage. Real Estate & Insurance
- 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.
- 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...
- 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 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.