Term
| Introduction to Real Estate Loan Process |
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Definition
| Most buyers require a mortgage to pay for the purchase of real estate. The process may begin with the buyer seeking pre-approval to determine the mortgage amount for which the buyer qualifies |
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Term
| The Mortgage Lending process |
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Definition
Given the costs, it is rare that a purchaser will ahve sufficient resources to pay cash to complete the purchase, requiring most borrowers to borrow funds for this purpose.
Mortgage lending or real estate financing is the procee of borrowing funds to purchase real estate. |
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Term
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Definition
| The buyers' pre-qualification is an effort by real estate professionals and lenders to screen potential buyers to determine their financial ability to purchase real estate. |
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Term
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Definition
| The process begins with meeting with a mortgage lender or borker, during which a formal loan application will be completed. The application is very detailed in seeking information about the borrower, the type of loan requested, and the property being purchase. Information is also required on employment history, sources of income, assets, and liablity for each borrower. |
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Term
Types of Mortgages:
What are Mortgages generally? |
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Definition
| Mortgage loans are competitive products designed to meet the needs of consumers looking for the "best deal." Mortgage loans are available from a wide variety of providers, such as private financiers, banks, savings and loans, credit unions, insurnaces companies and other investors. A number of solutions are offered to meet the borrowers needs. |
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Term
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Definition
1) fixed rate mortgage
2) adjustable rate mortgage (ARM)
3) balloon mortgage
4) Graduated payment mortgage (GPM)
5) seller's mortgage
6) reverse mortgage |
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Term
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Definition
| a mortgage where the interest is set for the duration of the loan |
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Term
| adjustable rate mortgage (ARM) |
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Definition
| A mortgage where the interest rate can be adjusted over the lifetime of the loan |
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Term
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Definition
| a mortgage where the payment are based on a fixed rate over a long-term period, such as 30 years, but the loan balance is due in the full at the end of a short term |
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Term
| Graduated-payment mortgage (GPM) |
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Definition
| a mortgage with an initial low periodic payment that is below the required self-amortitizing payment |
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Term
Seller's mortgage and
Purchase-money mortgage |
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Definition
| Sellers may help the buyer by having the buyer assume the seller's mortgage or taking back a mortgage |
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Term
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Definition
| For senior citizens who wish to stay in their own home but obtain funds based on the home collateral, some lenders provide a reverse mortgage where the homeowner receives monthly payments from the lender, but the loan does not have to be repaid until the property is sold, the homeowner dies,, or the owner no longer uses the home as his or her primary residence. |
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Term
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Definition
| During the loan qualification process, the lender evaluates two items to determine whether to approve the loan. First is a review of the loan application, verifying the information contained in the application to determine whether the borrower is creditworth- that is, more likely than not to repay the loan. The second part relates to the use of the real estate as collateral for the loan: its value and any clouds on the title |
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