A Formal Signed Credit Agreement Between A Lender And A Borrower Is Called

Loan Underwriting: The analysis of risk and the decision whether or not to grant a loan to a potential home buyer based on credit, employment, assets and other factors. Balance Sheet – A list of all assets and debts at any given time. The amount for which assets exceed liabilities is called net assets or equity. Also called net asset account or financial statement. Default – the inability of a borrower to fulfill the financial obligations of a loan or a breach of any of the other conditions or covenants of a loan. Master Note – A note (promise of repayment) that is often used in combination with line of credit financing to cover current and future credit needs by regularly repaying and repaying loans. .