A document required for all mortgage applications that includes the borrower’s income, assets and a description of the home. Also known as the Uniform Residential Loan Application (URLA).

A document required for the appraisal. Also known as the Uniform Residential Appraisal Report (URAR).

An appraisal form needed if the subject property is a 2- to 4-unit dwelling and the borrower is using rental income to qualify.

An agreement to enter into a contract and be bound by the terms of the offer. In relation to mortgages, acceptance typically refers to the buyer’s offer on a home being accepted by the seller.

Costs of purchasing a property other than the purchase price. Examples may include attorney fees, title insurance and lender fees.

A mortgage loan in which a large portion of the principal is repaid in a single payment at the end of the loan term.

Extra money some lenders require borrowers to have available after loan closing to help ensure they can make the payments and keep the home.

A ratio derived by dividing the borrower’s total monthly debt payments (including housing expenses) by their stable monthly income. This calculation is used to determine the mortgage amount for which a borrower qualifies. This term is used interchangeably with “total debt-to-income ratio” and “expense ratio.”

A deposit made to a seller that represents the prospective buyer’s intention to purchase the home — this money can generally be applied toward the down payment at closing. Also known as a deposit.

This Act was enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. The FCRA regulates the collection, dissemination, and use of consumer information, including consumer credit information.

A written explanation stating that money was given to a homebuyer, free and clear of any obligation to repay it, as a gift for the purchase of a house.

Protects a property owner against damage to a property due to certain hazards such as fire, severe storms, or other natural events.

When the borrower puts money into an account that is specifically used to ensure payment of property taxes and insurance premiums. Also known as escrow.

A property owned by more than one person, each with equal rights and obligations.

A mortgage loan made for the purpose of purchasing unimproved land.

A type of prefabricated housing that is largely assembled in factories, built on a chassis and wheels, then transported to a site.

A mortgage licensing system operated by state financial regulators. Its purpose is to streamline the licensing process, improve supervision, and increase transparency in residential lending.

An agreement between a buyer and seller of a property that states the price and terms of the sale. Also known as an agreement.

A loan secured by real estate wherein the personal property and furniture are included in the purchase price of the house.

Guidelines used by lenders to determine how much money a homebuyer is qualified to borrow. The two main qualifying ratios are debt-to-income and the housing expense ratio.

A limit placed on the amount of interest that lenders can charge on a loan or line of credit.

This lender-issued legal document verifies that a mortgage has been paid.

A legal claim against property for unpaid taxes.

Someone who reviews the application, documentation, and property information before making a loan decision.

An interest rate that changes periodically in relation to an index.

IRS form. A W-2 reports annual wage earner income.

The money or rebate paid to a mortgage broker for giving a borrower a higher interest rate on a loan in exchange for lower upfront costs, generally paid in origination fees, broker fees or discount points.

Local laws that establish building codes and usage regulations for properties in a specified area. This creation of districts specifies different types of property uses, such as commercial or residential.