What do we call the condition where a lender reviews the borrower and the property before granting a loan?

The appropriate term for the condition where a lender reviews both the borrower and the property before granting a loan is known as risk evaluation. This process involves assessing the financial situation of the borrower to determine their ability to repay the loan, as well as evaluating the property to ensure it meets certain criteria and provides adequate collateral for the loan.

Risk evaluation encompasses various factors such as the borrower's credit history, income level, employment stability, and the property's market value, condition, and location. The goal of this comprehensive review is to mitigate the lender's risk by ensuring that both the borrower and the collateral (the property) are suitable for the financing being considered.

In contrast, mortgage assessment typically refers more specifically to the evaluation of the mortgage terms and conditions rather than the broader context of risk management. Loan appraisal often focuses exclusively on determining the value of the property itself, while debt-to-income analysis specifically assesses the borrower’s income relative to their debt obligations. Therefore, the most fitting term for the overall evaluation process described in the question is risk evaluation, as it captures the essence of assessing both borrower and property in the lending decision.