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Account Executive - person who represents one of
the vendor or investors that you will work with to close your loan. Referred to as
"AE".
Appraisal Report - A written report by an appraiser
containing the opinion as to the value of a property and the reasoning leading to this
opinion. The factual date supporting the opinion, such as comparables, appraisal formulas,
and qualifications of the appraiser, will also be set forth.
Appraised Value - An opinion of the property at the
given time, based on facts regarding the location, improvements, etc., of the property and
surroundings.
Appraiser - One who is trained and educated in the
methods of determining the value of the property through analysis of various factors which
determine the value.
"As is" Condition - Premises is accepted
by a buyer or tenant in the condition existing at the time of the sale or lease, including
all physical defects.
Assets - For mortgage loans we are only interested
in what the actual cash or retirement assets are.
Assumption of Mortgage - Agreement by a buyer to
assume the liability under an existing note secured by a mortgage or deed of trust. The
lender must usually approve the new debtor in order to release the existing debtor
(usually the seller) from liability.
Automated Underwriting System -AUS- This is
the portal through which we access Loan Prospector or Desktop Underwriting for automated
underwriting analysis of the loan.
Bankruptcy - Proceeds under federal bankruptcy
statutes to relieve a debtor bankrupt from insurmountable debt. Chapter 7 - Complete
liquidation - borrower must wait at least two years from discharge date before applying
for a mortgage loan. Must provide "extenuating" circumstance documentation.
Chapter 13 - Restructure of Debt. FHA/ VA Borrowers may apply after 1 year into their
payout with a good pay history and permission from the Trustee to enter into a new debt.
For Conventional loans, the borrower must wait 1/3 into the payout, with a good pay
history before applying for a new loan.
Capital Gains - Gain realized from the sale of
capital assets. The Gains can only be counted if a three year histoy of gains exist. You
will need the tax return schedule D to determine the qualifying income.
Cashier's Check - Certified funds that the borrower
will use to close the loan. A personal check will not be accepted.
Cash on Hand Statement - A statement of cash on
hand which the buyer intends to apply to closing cost, impounds and down payment.
Certificate of Eligibility - A certificate obtained
by a veteran from a Veteran's Administration office. If the certificate is Green the
borrower is a "reguler" veteran, if the the certificate is gold, the borrower is
a "National Guard/Reservist". Both types of veterans still qualify for 100%
financing the differance will be in the funding fee amount. Must be in the file for
submission.
Certified Copy - A true copy, attesting to be true
by the officer holding the original. You will need to certify all copies of bank
statements, tax returns, divorce decrees, pay stubs and W-2's.
Child Care Statements - A statement by a working
borrower showing the amount paid for child care and to whom paid. Required for VA loans
only.
Closing Costs - Expenses incidental to a sale of
real estate, such as loan fees, title fees, appraisal fees, etc.
Closing Statement - This statement list the
financial settlement between buyer and seller, and also the cost each person must pay.
Also known as a HUD 1-Settlement Statement.
Closer - This person can be employed by your
company or you might use the person employed by your investor to prepare the papers
necessary to close the loan. This person will rely on your fee sheet and title work to
complete this information.
Collusion - An agreement of two or more people to
do something unlawful.
Commision - An amount, usually paid as a percentage
to the real estate agents and loan officer.
Commitment - 1) Title Insurance term for the
preliminary report issued before the actual policy. Said report shows the condition of
title and the steps necessary to complete the transfer of title as contemplated by the
buyer and seller. 2) A written promise to make or insure a loan for a specified amount and
on specified terms also known as a take out letter.
Co-Mortgagor - One signs a mortgage with another as
a borrower. The term is often applied to one who intends to guaranty the loan even though
co-morgagors have equal liability.
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If you are looking for a mortgage loan in the Texas Hill Country,
contact Judy, Mel or Charlie, they will work with you to find the right loan.
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