Back-End Qualification: When qualifying a prospective buyer for financing, the ratio of the borrowers income to monthly debt obligation is a primary consideration. Based on back-end qualification, the ratio of a prospects income to their total housing expense plus their long-term debt obligation should not exceed 36%.

 

Related Words

Back-End Qualification: When qualifying a prospective buyer for financing, the ratio of the borrowers income to monthly debt obligation is a primary consideration. Based on back-end qualification, the ratio of a pr . . . View Full Definition

Minimum Qualifications: The attributes of a job description which establishes a baseline for meeting the qualifications for a particular position.

Prequalification: When you prequalify for a mortgage, the lender calculates the approximate amount you’d be able to borrow, based on your current income and debt. Many lenders offer free mortgage calculators . . . View Full Definition

Front-End Qualification: When qualifying a prospective buyer for financing, the ratio of the borrowers income to monthly debt obligation is a primary consideration.

Qualification Period: A period of time during the first few months or weeks of a new policy when an insurance company will not reimburse a policyholder for a claim in order to allow the insurance company time to . . . View Full Definition

Bona Fide Occupational Qualification (BFOQ): A very narrowly interpreted exception to EEO laws that allows employers to base employment decisions for a particular job on such factors as sex, religion or national origin, if they are abl . . . View Full Definition

Back-End Load Fund: A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designa . . . View Full Definition

Back-End Ratio: The ratio of monthly housing costs (PITI) plus long-term debt service to total monthly income.

Back-End Load: Some mutual funds impose a back-end load, or a contingent deferred sales charge, if you sell shares in the fund during the first six or seven years after you purchase them. The charge is a p . . . View Full Definition

Disqualification: A player is disqualified after reaching five personal fouls in high school and college and six fouls in the NBA. Both players and coaches can also be kicked out of a game for many offenses s . . . View Full Definition