Mortgage Basics
This document estimates the borrower’s interest rate, payment, and closing costs.
What is the Loan Estimate?
This government-backed loan is popular with first-time buyers and may allow a low down payment.
What is an FHA loan?
Missing these can significantly damage a borrower’s credit score.
What are monthly payments?
This company researches ownership and helps protect against title defects.
What is the title company?
Buyers should ideally complete this before seriously touring homes.
What is a mortgage preapproval?
This is the money a buyer contributes toward the purchase price.
What is the down payment?
This loan is available to eligible veterans, active-duty service members, and certain surviving spouses.
What is a VA loan?
Using a large percentage of available revolving credit can negatively affect this.
What is a credit score?
This deposit shows that the buyer is serious about purchasing the property.
What is earnest money?
This contract detail tells the lender how much the seller may contribute toward the buyer’s costs.
What are seller concessions?
This three-letter term compares the loan amount to the property’s value.
What is LTV?
This loan may offer zero-down financing in eligible rural areas.
What is a USDA loan?
Borrowers should avoid opening this before closing without speaking to their lender.
What is a new credit account?
This final disclosure summarizes the loan terms and closing costs.
What is the Closing Disclosure?
Realtors should send this fully signed document to the lender as soon as possible.
What is the purchase agreement?
This ratio compares monthly debts with gross monthly income.
What is DTI?
Fannie Mae and Freddie Mac guidelines are commonly associated with this loan type.
What is a conventional loan?
Paying off a collection does not always automatically do this.
What is remove it from the credit report?
Borrowers should avoid changing jobs, moving money, or buying this expensive item before closing.
What is a car?
Changes to the closing date, price, concessions, or financing should be documented using this.
What is an amendment?
This process reviews the borrower, property, income, assets, and credit before final approval.
What is underwriting?
This FHA program can finance both the purchase and renovation of a home.
What is an FHA 203(k) loan?
A borrower should contact the lender before disputing accounts because disputes can affect this automated process.
What is loan underwriting or automated approval?
A large unexplained deposit may require this before it can be used for closing.
What is documentation or sourcing?
Strong communication between these three parties can help prevent closing delays.
Who are the buyer, realtor, and lender?