Mortgage Basics
FHA loans require this small % down
What is 3.5%?
This person helps you find homes
Who is a real estate agent/realtor?
This score helps determine loan approval
What is a credit score?
This is paid monthly to the lender
What is a mortgage payment?
This shows the seller you're serious about buying
What is an earnest money deposit?
What does “pre-approval” mean?
What is a lender reviewing your finances and approving a loan amount?
This is what you make when you want to buy a home
What is an offer?
A “good” credit score is typically above this number
This score is also the minimum score for most loan products available
What is 620+ credit score?
This protects your home from damage
What is homeowners insurance?
This is the price you propose to pay
What is an offer price?
This loan type avoids PMI with 20% down
What is a conventional loan?
A “contingency” protects you from this
What is backing out if conditions aren’t met?
This ratio compares debt to income
What is debt-to-income ratio (DTI)?
This is the yearly tax on your property
What are property taxes?
This can help make your offer stronger in a competitive market
What is a strong offer (over asking / fewer contingencies / higher deposit)?
SECURE BUY - FULLY UNDERWRITED APPROVAL
almost as good as a cash offer
What does PMI stand for?
What is Private Mortgage Insurance?
This inspection checks the home’s condition
What is a home inspection?
Paying bills on time helps improve this
What is your credit score?
This term means you fully own your home
What is owning your home free and clear?
This is when a seller responds with changes
What is a counteroffer?
This factor most affects your interest rate
What is your credit score?
This term means the seller accepts your offer
What is under contract?
This factor has the highest impact to your credit score
what is payment history?
This is money collected as part of your total mortgage payment to automatically pay for tax bill and HOI whenever the bill is due
What is escrow account?
This clause can let you walk away if financing falls through
What is a mortgage contingency?