Appraisal – an inspection completed by a 3rd party to determine the value of the home.
APR – Annual Percentage Rate; your interest rate and other fees included in the loan expressed as a percentage.
Closing Costs – costs to procure your home including title fees, appraisal fee, origination fees, interest due and escrow deposits.
Debt-to-income – ratio of your monthly obligations to your monthly income; used to assist in determining loan approval.
Down Payment – a portion of the price of the home, reducing your loan amount.
Due Diligence Deadline – deadline to complete any and all inspections and address any concerns with your Real Estate Agent and the seller.
Earnest Money – a portion of your down payment secured to demonstrate an earnest of good faith until the loan is funded.
Escrow – holding account which disburses insurance and tax payments on your behalf.
Finance and Appraisal Deadline – deadline to complete the appraisal and obtain the conditional underwriting approval.
Home Inspection – completed by 3rd party professional to evaluate the structure of the home.
Homeowner’s Insurance – coverage offered by a 3rd party agency to protect your home; this is a part of your total monthly payment and is disbursed through your escrow.
Interest Rate – the charge for financing your loan expressed as a percentage.
Loan Estimate – initial disclosure of your home loan which includes a breakdown of closing costs and your total loan payment.
Loan-to-value – ratio of your loan financed in comparison to the value of your home, as determined by the purchase price or appraised value.
MLS – identifying number for homes listed on the market.
Mortgage Insurance – coverage for the lender to protect against loan default; this is a portion of your total monthly payment.
Processing – loan step in which documents or information is needed to obtain approval.
Property Taxes – annual payment due to the county for homeownership; this is a part of your total monthly payment and is disbursed through your escrow.
Real Estate Purchase Contract – purchase agreement between buyer and seller of real estate property; negotiated by agents.
Settlement – we have up until this date to meet with the title company to sign all the documents and provide any funds necessary to complete the transaction.
Title Company – determines that the property title is clear and provides title insurance; the title company also manages your settlement.
Underwriting – lean step in which your loan application and all supporting documentation is under review.
Jim has refinanced my mortgage 3 times over the last 10 years. 2 of the 3 times were very difficult circumstances and Jim was able to find a program that really helped me moving forward. The transactions were quick and painless. Jim helped me stay calm and take one step at a time through the process. Jim would follow up and touch base to make sure I was doing well and to see if I had any questions. I know I can trust Jim to take care of me and put me in a safe and secure financial position. I always recommend Jim to my family and friends!