Mortgage Application Online

Mortgage Application Glossary

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P-T

Qualification – The initial process used to confirm that a borrower has sufficient income and enough cash to receive a loan; qualification does not verify if borrower is creditworthy.

PMI (Private Mortgage Insurance) – A policy that protects lenders from a loss if the buyer defaults.

Pre-Approve – An agreement that promises a lender will grant a loan if the borrower still meets the lender’s requirements at the time of purchase.

Pre-Qualify – An informal determination that states the amount an individual is allowed to borrow.

Principal – The remaining unpaid portion of a loan excluding interest.

Real Estate Agent – A person acting on behalf of a seller or buyer, who receives a commission on the sale of a house based on a percentage of the sales price.

REALTOR – an agent or realtor of the national association of realtors

Refinancing – using the proceeds of a new loan to pay off the debt of an existing loan.

RESPA – Real Estate Settlement Procedures Act provides home borrowers with information regarding settlement costs.

Settlement – The phase when property is transferred; otherwise known as closing.

Special Forbearance – A plan lenders give to protect themselves from losses by either reducing or suspending a borrower’s monthly payments.

Title Insurance – An insurance policy protects a buyer from losses caused by defects in the title that were not uncovered in the title search and not listed in the title report.

Truth-In-Lending - Law that requires lenders to fully disclose the terms and conditions of a mortgage, namely APR.