Here’s a great video if you’re thinking about getting a mortgage: https://youtu.be/3idkybb1BiI
I am not a lender or mortgage professional but here are links to all kinds of info on financing your next home and mortgage related terms.
Mortgage Financing Related Terms:
FHA Loan Guarantee: A guarantee by the FHA that a percentage of a loan will be underwritten by a mortgage company or banker.
Gift letter: A letter to a lender stating that a gift of cash has been made to the buyer(s) and that the person gifting the cash to the buyer is not expecting the gift to be repaid. The exact wording of the gift letter should be requested of the lender.
Good Faith Estimate (GFE)
Loan: An amount of money that is lent to a borrower who agrees to repay the amount plus interest.
Loan application: A document that buyers who are requesting a loan fill out and submit to their lender.
Loan closing costs: The costs a lender charges to close a borrower’s loan. These costs vary from lender to lender and from market to market.
Loan commitment: (Written Statement) A written document telling the borrowers that the mortgage company has agreed to lend them a specific amount of money at a specific interest rate for a specific period of time. The loan commitment may also contain conditions upon which the loan commitment is based.
Loan package: The group of mortgage documents that the borrower’s lender sends to the closing or escrow.
Loan processor: An administrative individual who is assigned to check, verify, and assemble all of the documents and the buyer’s funds and the borrower’s loan for closing.
Loan underwriter: One who underwrites a loan for another. Some lenders have investors underwrite a buyer’s loan.
Mortgage banker: One wholends the bank’s funds to borrowers and brings lenders and borrowers together.
Mortgage broker:A business that or an individual who unites lenders and borrowers and processes mortgage applications.
Mortgage loan servicing company:A company that collects monthly mortgage payments from borrowers.
Mortgage Commitment Date
Personal Financial Disclosures
Preapproval: A higher level of buyer/borrower prequalification required by a mortgage lender. Some preapprovals have conditions the borrower must meet.
Prequalification: The mortgage company tells a buyer in advance of the formal mortgage application, how much money the borrower can afford to borrow. Some pre-qualifications have conditions that the borrower must meet. Many sellers request to only allow showing by prequalified buyers.
Prepaid interest: Funds paid by the borrower at closing based on the number of days left in the month of closing.
Prepayment penalty: A fine imposed on the borrower by the lender when the loan is paid off before it comes due.
Resale Disclosures: If you are buying a condo or home in an association, the lender may want to review the resale disclosure. http://www.callsarahfirst.com/mn-resale-disclosure-package/
VA Loan Guarantee: A guarantee on a mortgage amount backed by the U.S. Department of Veterans Affairs.