Deposit toward down payment submitted with a purchase agreement as evidence
of the buyers commitment
PO Box 740243
Atlanta, GA 30374
The portion of the monthly payment that is not applied to principal or interest,
but rather is used to pay mortgage insurance, homeowners insurance and property
PO Box 2002,
Allen, TX 75013-3742
Short name for the Federal National Mortgage Association. One of the main
Government Sponsored Agencies which are the companies who sell mortgage backed
bonds to investors. They are the ultimate source of the money that we lend.
Fannie Mae protects its investors by issuing underwriting guidelines that
are to be followed to ensure quality lending; also see schematic under "commonly
Short name for Federal Home Loan Mortgage Corporation - see above
Government backed minimum down financing program which has a lower mortgage
insurance premium and greater credit leeway as compared to conventional minimum
Most common type of financing. Terms ranging from 10 to 30 years. Interest
rate and P&I payment remains constant throughout life of loan.
Not locking in a rate, but rather choosing to float the interest rate as
the market moves up or down.
Required document on all loans. Confirms if the property is in or out of
a FEMA designated flood zone
Funds held in
Generally only applies to new construction. Monies held from the seller to
provide payment for repairs or non completed items.
Document prepared by lender which estimates and delineates the various fees
and closing costs associated with the home purchase
Financing provided from government agencies such as FHA, VA etc
Home Equity Line of Credit. Second mortgage product, generally characterized
by interest only payments and the ability to draw, pay back, and redraw
Not required by lender. This is a private inspection done by the buyers choice
to confirm that the property is in acceptable condition.
Amount paid by owner of a townhome or condo to cover various amenities or
services provided by the homeowners association (examples -- common areas,
hazard insurance, garbage, mowing, snow removal)
Insurance which covers damage or loss to the property. The premium is usually
paid into an escrow account held by the mortgage company, which then pays
the insurance company once a year
Document prepared by title company at closing which shows where all of the
money in the transaction was coming from and going to.