Commercial Lending Glossary
A glossary of definitions for common terms used in commercial real estate hard money lending & CRE investing.
The process by which financial institutions assess the risk and creditworthiness associated with a potential customer or loan applicant. Considerations made within the underwriting process may include employment history, financial statements, salary, and credit reports.
A loan supported only by the borrower's creditworthiness rather than collateral. For example, a borrower with a high credit rating may be issued a loan without requiring a piece of real estate to be used as collateral. Can be directly contrasted with secured loans.