Loan Types
This loan type is most commonly used for clients who have good credit. A minimum 3% down payment is required. No PMI is needed if you are putting 20% down for this loan type.
Vacant Land
No
APR
Annual Percentage Rate (APR): The total yearly cost of a mortgage stated as a percentage of the loan amount; includes the base interest rate, primary mortgage insurance, and loan origination fee (points)
This is used to determine the value of the home that the client is purchasing.
Appraisal
Fees that a homebuyer pays to a lender in exchange for a lower interest rate on their mortgage
Discount Points
This loan type requires 3.5% down. Mortgage insurance is mandatory on this loan no matter how much money is put down. This loan type is more flexible on lower credit scores than others.
FHA Loan
A manufactured home
Yes
PITI
Items included in a monthly payment: principal, interest, taxes, and insurance
This is the disclosure that goes out to the clients in the beginning of the process that includes the fees, monthly payment, funds to close, etc.
Loan Estimate
How many years do you need to be self employed/1099 for a lender to use their income?
2 years
This loan type requires no down payment... But must be purchased in what is considered a "rural" area.
USDA Loan
Construction Loan
No
CTC
Everyone's favorite Acronym.. CLEAR TO CLOSE!
Deposit that a buyer gives to a seller to show they are serious about buying a home. It's also known as a good faith deposit
Earnest Money
How many years of not owning a primary residence is required for the person to be considered a "first time buyer"
3 years
This loan type requires no down payment and there is no mortgage insurance on this loan. There are no area restrictions. Only specific clients are eligible for this loan..
A Duplex
Yes
DTI
Debt to Income
The process a lender uses to assess a borrower's eligibility for a loan by examining their financial and credit history. The process involves verifying the borrower's income, assets, debt, credit, and property details.
Underwriting
When you receive funds from a family member or friend to help with funds to close, this is considered a ____
Gift
This is a program that is specific to Missouri. This program includes a grant that can help with the buyers down payment.
MHDC Program
Condo
Yes (In most cases)
LTV
Loan to Value
A professional evaluation of a property's condition and safety, typically performed before a home is sold. The inspection includes a visual assessment of the home's structure, systems, and overall condition
Inspection
This account is where your funds are held for taxes and insurance. They are automatically paid out of this account when they are due.
Escrow Account