Real Estate Glossary
|FHA Loan: A Federal
Housing Administration loan program that provides a guarantee against default.
The borrower may benefit from a smaller down payment.|
Reporting Act: Information in your credit report that federal law gives
citizens the right to challenge.
Fixed Rate Mortgage: Loans
with interest rates that do not fluctuate.
Insurance home buyers must have in order to protect the investment of the
property.Loan origination fee: A fee for loan application.
processing: The lenders opinion of your financial and credit past, combined
with you income to calculate your ability to qualify for a loan.
to Value Ratio: This is the ratio of the amount borrowed to the appraised
value of the home.
Lock-In Agreement: This agreement allows you
to lock in an interest rate at or anytime up to the closing.
Insurance: This insurance protects the investor from possible loss if the
borrower defaults on the loan.
Multiple Listing Service (MLS):
A service used by real estate agents to obtain information on homes and land for
PITI: Principle, interest, taxes, insurance- Many
mortgage companies are setup with monthly loan payments to include these.
Agreement: This is the agreement that legally binds the buyer and seller.
All contingencies of the agreement must be listed here.
Evidence of a person's legal right to the ownership of a property, usually in
the form of a certificate or a signed contract.
Insurance purchased to protect the lender and homeowner against claims on the
title from previous owners or encumbrances.
analysis done by the lender to determine if you qualify for a loan.
Administration loan (VA loan): These loans are available to US Veterans and
their surviving spouses. The loans require no down payment and you can borrow
the entire purchase price of the home.