Mortgage Basics
This is the initial amount of money borrowed from a lender
Loan Amount
First-time homebuyers often confuse pre-qualification with this more detailed lending process.
Pre-Approval
This loan is available to eligible veterans and active-duty military members.
VA
This is the final document outlining all costs of the mortgage, delivered at least 3 days before closing.
Closing Disclosure
This common acronym stands for principal, interest, taxes, and insurance.
PITI
This type of mortgage rate remains the same for the life of the loan.
Fixed-Rate Mortgage
This is the upfront percentage of the home's purchase price paid by the buyer.
The Down Payment
A loan designed for rural homebuyers and backed by the U.S. Department of Agriculture
USDA
This report shows a buyer’s credit history and score to lenders
Credit Report
This is what a buyer will pay to lower their qualified interest rate.
Discount Points
What are the fees and expenses that you pay at the time of closing on a home loan, in addition to down payment?
Closing Costs
This professional determines the market value of a home during the lending process.
Appraiser
This product will provide consumers a way to tap into the unused equity in their current home
Cash-Out Refinance
The legal document that pledges a property as security for a loan
Mortgage or Deed of Trust
What are the 3 major credit bureau repositories?
Equifax, Experian, and Transunion
This document shows your estimated monthly mortgage payment, interest rate, and loan terms before closing.
The Loan Estimate (LE)
This is the term for money deposited to show a buyer's seriousness in a purchase offer.
Earnest Money
This type of mortgage starts with a lower interest rate that adjusts over time.
Adjustable-Rate Mortgage (ARM)
The document that outlines the terms of repayment for a mortgage
Promissory Note
This type of insurance is typically required by lenders when a borrower puts down less than 20% on a conventional mortgage.
Private Mortgage Insurance (PMI)
This is the maximum percentage of your income a lender allows for all monthly debts, including the new mortgage.
Debt-to-Income Ratio (DTI)
This protects lenders and buyers against losses from disputes over property ownership or unknown liens
Title Insurance
Construction Loan
A lender may request this financial document to verify a buyer’s income from employment.
Paystub of W-2
This person guides borrowers through the mortgage process, from application to closing.
Loan Officer