Real Estate Glossary
FHA Loan: A Federal
Housing Administration loan program that provides a guarantee against default.
The borrower may benefit from a smaller down payment.
Fair Credit
Reporting Act: Information in your credit report that federal law gives
citizens the right to challenge.
Fixed Rate Mortgage: Loans
with interest rates that do not fluctuate.
Homeowners Insurance:
Insurance home buyers must have in order to protect the investment of the
property.Loan origination fee: A fee for loan application.
Loan
processing: The lenders opinion of your financial and credit past, combined
with you income to calculate your ability to qualify for a loan.
Loan
to Value Ratio: This is the ratio of the amount borrowed to the appraised
value of the home.
Lock-In Agreement: This agreement allows you
to lock in an interest rate at or anytime up to the closing.
Mortgage
Insurance: This insurance protects the investor from possible loss if the
borrower defaults on the loan.
Multiple Listing Service (MLS):
A service used by real estate agents to obtain information on homes and land for
sale.
PITI: Principle, interest, taxes, insurance- Many
mortgage companies are setup with monthly loan payments to include these.
Purchase
Agreement: This is the agreement that legally binds the buyer and seller.
All contingencies of the agreement must be listed here.
Title:
Evidence of a person's legal right to the ownership of a property, usually in
the form of a certificate or a signed contract.
Title insurance:
Insurance purchased to protect the lender and homeowner against claims on the
title from previous owners or encumbrances.
Underwriting: An
analysis done by the lender to determine if you qualify for a loan.
Veteran's
Administration loan (VA loan): These loans are available to US Veterans and
their surviving spouses. The loans require no down payment and you can borrow
the entire purchase price of the home. | |
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