Mortgage Lending 101

Mortgage Basics

100

This is the initial amount of money borrowed from a lender

Loan Amount

200

This type of mortgage rate remains the same for the life of the loan.

Fixed-Rate Mortgage

300

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

400

This document shows your estimated monthly mortgage payment, interest rate, and loan terms before closing.

The Loan Estimate (LE)

500

This is the maximum percentage of your income a lender allows for all monthly debts, including the new mortgage.

Debt-to-Income Ratio (DTI)

Homebuyer Knowledge

100

First-time homebuyers often confuse pre-qualification with this more detailed lending process.

Pre-Approval

200

This is the upfront percentage of the home's purchase price paid by the buyer.

The Down Payment

300

This professional determines the market value of a home during the lending process.

Appraiser

400

This is the term for money deposited to show a buyer's seriousness in a purchase offer.

Earnest Money

500

This protects lenders and buyers against losses from disputes over property ownership or unknown liens

Title Insurance

Loan Types

100

This loan is available to eligible veterans and active-duty military members.

VA

200

A loan designed for rural homebuyers and backed by the U.S. Department of Agriculture

USDA

300

This product will provide consumers a way to tap into the unused equity in their current home

Cash-Out Refinance 

400

This type of mortgage starts with a lower interest rate that adjusts over time.

Adjustable-Rate Mortgage (ARM)

500

A specific type of financing designed to find the process of building a new home or undertaking major renovations.

Construction Loan

Mortgage Documents

100

This is the final document outlining all costs of the mortgage, delivered at least 3 days before closing.

Closing Disclosure

200

This report shows a buyer’s credit history and score to lenders

Credit Report

300

The legal document that pledges a property as security for a loan

Mortgage or Deed of Trust

400

The document that outlines the terms of repayment for a mortgage

Promissory Note

500

A lender may request this financial document to verify a buyer’s income from employment.

Paystub of W-2

Fun Facts & Lender Lingo

100

This common acronym stands for principal, interest, taxes, and insurance.

PITI

200

This is what a buyer will pay to lower their qualified interest rate.

Discount Points

300

What are the 3 major credit bureau repositories?

Equifax, Experian, and Transunion 

400

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)

500

This person guides borrowers through the mortgage process, from application to closing.

Loan Officer