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Loan Terminology

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Term	Main definition
Lien	A claim of money against a property. The value of the property is used as security for repayment of the debt.
Loan Closing	A point at which the loan will be finalized and legally executed with signatures of the borrower. This is also the point at which Escrow will collect any funds due as stated on the Closing Disclosure.
Loan Estimate	A federally mandated document that describes important facts about your loan such as interest rate and estimated closing costs. Lenders are required to give you this estimate by law after you submit a completed loan application.
Loan Prequalification	An estimate of what you can borrow from a lender to buy a home, based on gross income and debt. Many Lenders use Pre-Qual Letter and Pre-Approval Letter interchangeably.
Loan-to-Value Ratio	The relationship between the loan amount and the value of the property, used to determine what type of loan you might qualify for and how much you can borrow.

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Pre-Approval for a Home Loan: What You Should Do

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Should You Get an FHA Loan or Conventional Loan?

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7 Tips to Improve Your Credit Score This Year

One of the best ways to do this is to improve your credit score. Start by pulling up a copy of all three of your credit reports. You can get 1 free credit report per year by going to www.annualcreditreport.com Look over each report and if there are errors, write dispute letters to the bureaus concerning them. Also, pull up your credit score. Here are additional ways to improve your credit score in 2020.

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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!