Lakes and Hills Mortgage

Glossary

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.

If you are looking for a mortgage loan in the Texas Hill Country, contact Judy or Matt, they will work with you to find the right loan.