Know Mortgage | Learn the Mortgage Lingo

 

 

LEARN THE LINGO

Know Mortgage | Learn the Mortgage LingoLEARN THE LINGO

IF YOU’RE LOOKING FOR A RATE QUOTE, CLICK HERE

Loan Terminology

Search for glossary terms (regular expression allowed)
Term Main definition
Home Equity Line of Credit

A type of home equity loan that allows you to access money as a line of credit.

Home Equity Loan

A loan based on the mount of equity in your home.

Homeowners Association (HOA)

A group of homeowners within a defined community, or complex who make decisions about maintenance and repair of the land and common areas and enforce agreed-upon covenants, conditions, and restrictions (CC&Rs).

Synonyms - HOA
Homeowners Insurance

A form of insurance that protects your property against loss from theft, liability, and most common disasters.

Homestead

A property-tax classification for owner-occupied homes that reduces the amount paid for property taxes.

Housing Co-Op

A legal entity by which a group of people share ownership of one or more residential buildings. The shareholder-owners divide the mortgage, taxes, insurance, maintenance, and other expenses.

    • DID YOU KNOW:

      Only close family and relatives, such as aunts and uncles can “gift” you money for a down payment.
    • DID YOU KNOW:

      The failure rate for a home purchase is 20% on average.
    • DID YOU KNOW:

      Many lenders have NO PMI loans, even if you have a down payment of less than 20%.
    • DID YOU KNOW:

      Veterans may qualify for a home purchase with no down payment using a VA Loan for purchase.
    • DID YOU KNOW:

      Many condominiums are not FHA approved and therefore you will not be able to purchase the condo with an FHA Loan.
    • DID YOU KNOW:

      FHA Loans give you greater flexibility with your debt to income ratio. In short, you can qualify for more loan with less income.
    • DID YOU KNOW:

      Student loans can throw your debt to income ratio out of whack and disqualify you from approval due to excessive debt.
    • DID YOU KNOW:

      Bankruptcy does not disqualify you from getting an FHA Loan as long as it has been 2 years since the recorded discharge date, or 4 years for a Conventional Loan.
    • DID YOU KNOW:

      Many lenders will not accept documents, such as bank statements, that have any portion that has been blacked out or tampered with.
    • PRO TIP:

      Be sure to understand exactly how much loan you can be approved for before you fall in love with a home and get into a contract!
    • PRO TIP:

      Don’t move around assets during the processing of your home purchase loan, as it will trigger the underwriters to ask repeatedly for updated bank statements.
    • PRO TIP:

      Not every Realtor can produce the same results, so be sure to check their credentials and experience.
    • PRO TIP:

      Don’t just trust a pre-qualification from a licensed lending officer. Get pre-approved by an actual underwriter before you get into a home purchase contract.

    Speak with a loan agent now!