Resources > Glossary > Net Effective Income

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Net Effective Income

Function: noun

Definition 1:
The borrower's gross income after federal income tax has been deducted. Net effective income is one of the statistics that a lender would need to use to determine if a potential borrower qualifies for a particular loan, or what the maximum amount of credit they could quality for would be.