Glossary and Acronyms "Q"

Qualified / Nonqualified Contributions

These terms identify whether contributions are made with pretax or post-tax dollars. Qualified contributions come from money that hasn’t been taxed yet, such as money withheld from your paycheck for your 401(k). Non qualified contributions come from money that has already been taxed, such as the check you write for your Roth IRA.

Quality Control

A process used to make sure that companies participating in the issuance of mortgages comply with all state and national laws.

Quitclaim Deed

A deed that serves to transfer the title but offers no promises about the quality

Qualifying Rate

The Interest rate used in calculating the initial mortgage payment in qualifying a borrower. (Ref: Documents Required for a Home Loan Application The Loan Estimate (LE)

Qualifying ratios

Calculations that are used to determine whether a borrower can qualify for a mortgage. They consist of 2 separate calculations: a housing expense as a percent of income and total debt obligations as a percent of income. (Ref: What is Debt to Income Ratio and how is DTI calculated)

Qualifying Guidelines

Criteria used to determine eligibility for a loan.

Acronyms

QA

Quality Assurance

QC

Quality Control

QM

(Qualified mortgage) a type of loan that requires the lender to make sure that borrower can repay the loan

QRM

Qualified Residential Mortgage