Mortgage Basics
This is the term for the initial amount borrowed on a mortgage.
What is the principal?
This ratio compares a borrower’s monthly debt payments to their gross income.
What is the debt-to-income (DTI) ratio?
This mortgage product is ideal for first-time homebuyers with low down payments.
What is an FHA loan?
This document outlines all final loan terms and closing costs.
What is the Closing Disclosure (CD)?
This is the process for connecting a client with a mortgage lending officer (MLO) at a branch.
What is a referral?
This type of mortgage has an interest rate that changes over time.
What is an adjustable-rate mortgage (ARM)?
The maximum LTV ratio allowed for a conventional loan without PMI.
What is 80%?
This product allows veterans to purchase homes with no down payment.
What is a VA loan?
This law requires lenders to disclose loan terms and APR.
What is the Truth in Lending Act (TILA)?
This service helps retain mortgage clients by offering payment convenience.
What is ACH auto-pay?
The document that outlines the terms of a mortgage loan.
What is the promissory note?
This credit score is often considered the minimum for conventional mortgage approval.
What is 620?
This type of loan is used for properties that exceed conforming loan limits.
What is a jumbo loan?
This is the waiting period between receiving the closing disclosure (CD) and closing.
What is 3 business days?
This type of outreach helps deepen relationships with clients to uncover needs.
What is the 2x2x2 process?
This is the process of verifying a borrower’s ability to repay a loan.
What is underwriting?
This document shows the borrower’s income and is often required during underwriting.
What is a pay stub or W-2?
This product allows borrowers to refinance and take cash out.
What is a cash-out refinance?
This regulation protects consumers from unfair lending practices.
What is RESPA (Real Estate Settlement Procedures Act)?
This is the title company we work closely with.
What is Arrow Land Transfer?
The federal agency that backs FHA loans.
What is the Department of Housing and Urban Development (HUD)?
This is the term for a borrower’s ability to repay based on income, assets, and liabilities.
What is capacity?
This mortgage product adjusts based on a benchmark interest rate.
What is a variable-rate mortgage?
This is the legal process of transferring property ownership.
What is closing or settlement?
This internal partner helps branch managers close more mortgage deals.
Who is the mortgage loan officer (MLO)?