Don't make any adverse changes to your financial
"picture" during this time between approval and closing.
Innocent mistakes range from applying for a new department store
credit card, to purchasing a refrigerator for the new house, to
buying a new car, to quitting a job to go full-time into a new
business.
When you supply us information to help verify your income,
employment, assets and credit history, we will obtain a credit
report directly from the credit bureau.
Glossary
D
Debt-to-income ratio: a comparison of gross income to housing and
non-housing expenses; With the FHA, the-monthly mortgage payment
should be no more than 29% of monthly gross income (before taxes) and
the mortgage payment combined with non-housing debts should not exceed
41% of income.
Deed: the document that transfers ownership of a property.
Deed-in-lieu: to avoid foreclosure ("in lieu" of
foreclosure), a deed is given to the lender to fulfill the obligation
to repay the debt; this process doesn't allow the borrower to remain
in the house but helps avoid the costs, time, and effort associated
with foreclosure.
Default: the inability to pay monthly mortgage payments in a timely
manner or to otherwise meet the mortgage terms.
Delinquency: failure of a borrower to make timely mortgage payments
under a loan agreement. This can lead to foreclosure
Department of Veterans Affairs (VA): an independent agency of the
federal government which guarantees long-term, low- or no-down payment
mortgages to eligible veterans.
Discount point: normally paid at closing and generally calculated to
be equivalent to 1% of the total loan amount Each point is equal to 1
percent of the loan amount (e.g. two points on a $100,000 mortgage
would cost $2,000)., Discount points are paid to reduce the interest
rate on a loan.
Discount Points: prepaid interest assessed at closing by the lender.
Down payment: the portion of a home's purchase price that is paid in
cash and is not part of the mortgage loan. Down payments usually are
10 percent to 20 percent of the sales price on Conventional loans, and
no money down up to 5 percent on FHA and VA loans.
Due-On-Sale Clause: a provision in a mortgage or deed of trust that
allows the lender to demand immediate payment of the balance of the
mortgage if the mortgage holder sells the home.
Equal
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