The Behrens Team

The greatest good you can do for another is not just to share your riches but to reveal to him his own.

Benjamin Disraeli


A-D / E-H / I-P / Q-Z

Earnest Money
Deposit toward down payment submitted with a purchase agreement as evidence of the buyers commitment

Equifax Information Services
PO Box 740243
Atlanta, GA 30374
(800) 685-1111

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 taxes.

Experian Information Services
PO Box 2002,
Allen, TX 75013-3742
(888) 397-3742

Fannie Mae
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 asked questions"

Freddie Mac
Short name for Federal Home Loan Mortgage Corporation - see above

FHA Financing
Government backed minimum down financing program which has a lower mortgage insurance premium and greater credit leeway as compared to conventional minimum down programs

Fixed Loan
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.

Flood Certification
Required document on all loans. Confirms if the property is in or out of a FEMA designated flood zone

Funds held in Escrow
Generally only applies to new construction. Monies held from the seller to provide payment for repairs or non completed items.

Good Faith Estimate
Document prepared by lender which estimates and delineates the various fees and closing costs associated with the home purchase

Government Financing
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

Home Inspection
Not required by lender. This is a private inspection done by the buyers choice to confirm that the property is in acceptable condition.

Homeowners Association Dues
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)

Homeowners/hazard Insurance
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

HUD-I (Settlement statement)
Document prepared by title company at closing which shows where all of the money in the transaction was coming from and going to.

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