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
L
Lease purchase: assists low- to moderate-income home buyers in
purchasing a home by allowing them to lease a home with an option to
buy; the rent payment is made up of the monthly rental payment plus an
additional amount that is credited to an account for use as a down
payment.
LIBOR: Short for London Inter Bank Offer Rate. It's the rate of
interest at which banks offer to lend money to one another in the
wholesale money markets in London. It is a standard financial index
used in U.S. capital markets
Lien: a legal claim against property that must be satisfied when the
property is sold.
Loan: money borrowed that is usually repaid with interest.
Loan fraud: purposely giving incorrect information on a loan
application in order to better qualify for a loan; may result in civil
liability or criminal penalties.
Loan-to-value (LTV) ratio: a percentage calculated by dividing the
amount borrowed by the price or appraised value of the home to be
purchased; the higher the LTV, the less cash a borrower is required to
pay as down payment.
Lock-in: since interest rates can change frequently, many lenders
offer an interest rate lock-in that guarantees a specific interest
rate if the loan is closed within a specific time.
Loss mitigation: a process to avoid foreclosure; the lender tries to
help a borrower who has been unable to make loan payments and is in
danger of defaulting on his or her loan
Equal
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