Glossary

To determine if a loan made to a particular borrower is an acceptable risk. Analysis is based on the borrower’s income and debts, credit rating and the value of the home being financed. See credit rating.

Standard maximum percentages for monthly loan payment to income used by lenders when qualifying borrowers. Two ratios are applied: one for loan payment to income and one for total debt payments to income; the latter includes existing debts of the borrower that extend for more than several months. Loans insured by the FHA use a different set of ratios compared to conventional loans.

The right of an owner or any other person legally entitled to possession to the use of property without interference. A landlord should not interfere with a tenant who is in compliance with a lease.

A suit in court to remove a defect, cloud or suspicion regarding legal rights of an owner to a certain parcel of real property. A potential claimant is told to bring forward the claims so they can be judged as valid or not. If they are not valid, the claimant must stop interfering with the owner.

A deed that conveys only the grantor’s rights or interest in real estate, without stating their nature and with no warranties of ownership. Often used to remove a possible cloud from the title.