Mortgage Basics
This type of mortgage rate remains the same for the life of the mortgage loan
What is a Fixed-Rate Mortgage?
First-time Homebuyers often confuse pre-qualification with this is more detailed lending process
What is Pre-Approval?
This is a product we can do to provide consumers the unused equity of their current home
What is a "Cash-out" Refinance?
This is what a buyer will pay to lower their qualified interest rate
What are Discount Points?
This is the year I started in the "Lending Industry"
What is 1990?
These are two of the main Conventional "government-sponsored" enterprises created to increase the availability of consumers to obtain a mortgage loan
Who is Fannie Mae & Freddie Mac?
This is the term used for money deposited to show a buyer's commitment to purchasing a property
What is Earnest Money?
These loan types exceed the conforming loan limit
What is Jumbo?
Legal document that pledges a property as security for a loan
What is a Mortgage / Deed of Trust?
These are the 3 major credit bureau repositories
What are Equifax, Experian, & Trans Union?
This common credit issue can delay or deny your mortgage approval
What is a Low Credit Score?
This is the upfront percentage of the home's purchase price paid by the buyer?
What is down payment?
This program is designed to assist buyers wanting to purchase a home in rural areas backed by the U.S. Dept of Agriculture
What is the USDA ?
A lender may request these two items to verify a buyer's income from their employment
What is paystub & W2?
This is why lenders typically require a homebuyer to have established credit before approving a mortgage loan
What is to demonstrate their ability to repay borrower money to purchase the new home?
These are the 3 main government backed loans offered for buyers who have are not able to qualify for Conventional loans
What are FHA, USDA, & VA?
This professional determines the market value of a home during the lending process
Who is an appraiser?
This type of mortgage starts with a lower interest rate that adjusts over time
What is an Adjustable-Rate Mortgage (ARM)
The document that outlines the terms of repayment for a mortgage
What is a Promissory Note?
This product is typically required by lenders when a borrower puts down less than 20% on a conventional mortgage
What is Private Mortgage Insurance (PMI)?
This document shows your estimated monthly mortgage payment, interest rate, and loan terms before closing
What is the LE - Loan Estimate?
This protects lenders and buyers against losses from disputes over property ownership or unknown liens
What is Title Insurance?
This loan is often used for home renovations and wraps repair costs into the mortgage
What is 203(k)
This is the maximum percentage of your income a lender allows for all monthly debts, including the new mortgage
What is DTI (Debt-to-income Ratio)?
This type of loan might be used by a buyer with a recent bankruptcy or credit challenge
What is a "NON-QM" Loan?