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Loan Terminology

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Term	Main definition
PITI (Principal, Interest, Taxes, and Insurance)	Used to describe a mortgage payment that includes principal, interest, property taxes, and insurance. Synonyms - Principal, Interest, Taxes, and Insurance
Pre-Approval	The lender determines to loan you a set amount of money, so long as you meet certain conditions and the home meets their requirements.
Principal	The amount borrowed (loan amount) or the outstanding balance of a loan (does not include interest and other charges).
Private Mortgage Insurance (PMI)	An insurance premium added to your monthly payment (provided by private insurance companies) which protects your lender against loss if you can Synonyms - PMI
Property Taxes	Charged by the local government, used to fund services such as schools, police, and street maintenance. This tax can be Escrowed into your mortgage payment or paid separately by you the home owner.
Purchase Agreement	A written contract signed by you and the seller stating the terms and conditions under which a property will be sold.

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Should You Get an FHA Loan or Conventional Loan?

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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!