Vocabulary
The initial upfront cash payment made by buyer to the seller which is a portion of the home's total cost. Usually between 10-20%.
What is a down payment?
A loan available to current military or those who have served in the past. 0% down, backed by the government
What is a Veterans Affairs loan? (VA)
This is a loan with a fixed monthly payment secured by the value of your home.
What is a home equity loan?
This type of loan has an interest rate that doesn't change throughout the life of the loan
What is a fixed rate?
This person is someone that the buyer and the seller have as their own representative to help with the sale or purchase of a home.
What is a real estate agent?
This is a "good faith" deposit made by the buyer indicating a serious intent to purchase. It is held in escrow and can be applied to closing costs or the down payment.
What is Earnest Money?
USDA, FHA and VA are all these type of loans
What are government backed loans?
This is a type of mortgage often used by older people to supplement their retirement, based on the value of their home, in which they receive a monthly payment.
What is a reverse mortgage?
This type of loan is available to members of the military and requires $0 down on a home purchase
What is a VA or Veteran's loan?
This person conducts a thorough examination of a home on behalf of the bank (but paid for by the borrower) to assess the value of the property.
What is an appraiser?
What is a balloon payment?
These are 3 ways to work on getting prequalified for a mortgage loan
What are excellent credit scores, gathering documents and saving for a down payment
A way of avoiding PMI, an additional separate loan taken out at the same time as the original mortgage.
What is a piggyback loan?
These types of loans are insured by the government.
What are FHA, VA and USDA loans?
This person conducts a thorough examination of a home for the buyer to alert them to any issues with the home.
What is a home inspector?
An additional loan secured by the equity on your home, taken out while your original loan is still in effect
What is a 2nd mortgage?
A fixed rate for a period of time that can adjust periodically based on the market.
What is an Adjustable rate mortgage?
An additional loan taken out while your original mortgage is still in effect, secured by the equity in your home.
What is a 2nd mortgage?
This type of loan is the most common and is not insured by the government.
What is a conventional loan?
This person is responsible for conducting a deep search into public records to ensure the deed on a home is free of liens, taxes and other legal issues.
What is a title insurance agent?
A neutral account held by a 3rd party (not buyer or seller or lender) until all parts of financial agreement are completed. Also where money is held to pay home owner's insurance and property taxes if the buyer so desires.
What is an escrow account?
A loan based on the estimated value of a home after a remodel, it allows you to borrow more than a regular home equity loan
What is a renovation loan?
a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA), used for high-cost or luxury properties. 2026 limits are $832,750.
What is a Jumbo Loan?
This is a revolving variable rate loan secured by the value of your home.
What is a HELOC, or HOME EQUITY LINE OF CREDIT?
This person usually works at a title company, bank or attorney's office and holds the funds for your home purchase.
What is an ESCROW agent?