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Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
50% - Moderately
50% - Moderately
|Synonyms:||loan purchase qualification amount|
|Filed Under:||financial-banking, mortgages|
Definition of lpq amount
- lpq amount
- 1. A term used by CanEquity, it represents the amount to be financed based on the three types of inquiries received via an online mortgage application (Loan / Purchase / Qualification). 'Loan' can be for home improvements, debt consolidations or investment purposes and the applicant must be a homeowner to take out a mortgage loan. A 'Purchase' can be a first-time home buyer or a purchase of a new property; you do not have to own a home when making a purchase. Qualification is simply pre-qualifying or getting pre-approved for an X amount. When applications are submitted, the 'LPQ amount' is dependent on the type of mortgage inquiry. Typically a 'Loan' is a fixed amount that is always lower than the value of the home. 'Purchase' amount is the purchase price of the home/property and can be up to 100% of the value (down-payments are not factored at time of submission). 'Qualification' is considered a target value but may come back substantially lower (or higher in some cases). The 'LPQ amount' is a loose representation of the potential amount but rarely equates to the actual final amount of an online mortgage application.
Related Terms and Acronyms:
- amount financed The principal that is financed. It could include the cost of the purchase and other items rolled into the payments.
- approval An assessment made by a lender of a borrower's ability to pay for a home and a confirmation of the amount the borrower may obtain.
- loan application A document in which a prospective borrower details his or her financial situation to qualify for a loan.
- loan commitment A lender's promise to advance a specific sum on specific terms.
- loan processing The steps taken by a lender to convert a loan application into an approved loan for the potential borrower. These steps include processing the application, conducting a credit investigation, evaluating the loan, etc.
The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
➥ A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
- mortgage (mtg) A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- mortgage application A document in which a prospective borrower details his or her financial situation to qualify for a loan.
- pre-approval A process that mortgage lenders use to determine how much money they would lend you based on a thorough review of your financial situation. Lenders issue a pre-approval letter which strengthens your position when bidding on a home, as it shows sellers that you will be able to raise funds needed to purchase.
- purchase price The total selling price of the home, including the cash down payment and the principal on the loan.
More Related Terms and Acronyms
- conforming loan — Definition
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