Resources
Mortgage Terms
Adjustable Rate - An interest rate that fluctuates every now and then. Payments could increase or decrease.
Amortization - Method of repayment in which the amount you borrow is repaid through monthly payments on the principal and the interest. During the first years, the payments generally go towards the interest, but towards the final years, payments go towards the last of the principal owed.
Annual Membership - Also called "participation fee." An amount that is charged once a year for a line a credit, even if the line is not used.
Annual Percentage Rate ( APR ) - The yearly interest percentage of a loan, as expressed by the total finance charge actually paid. The APR is disclosed as a requirement of the Federal Truth in Lending Act.
Buydown - A payment made to the lender from either the seller, buyer, third party, or any combination of these, that makes the interest rate reduce during the early years of the loan.
Cap - In adjustable rate mortgages, the limit on how much the interest rate or monthly payment can change.
Closing - The final procedure in which documents are executed and/or recorded, and the sale (or loan) is completed. The Closing Statement will list the financial settlement the buyer and seller and also the costs each has to pay.
CMA - Competitive Market Analysis. A comparison of homes similar to the home of a seller so that the agent can help set the home's listing price.
Contingency - A stated event that must occur before a contract is binding.
Deposit - A portion of the down payment given by the buyer to the seller or escrow agent with a written offer to purchase.
Down Payment - The cash portion of the purchase price paid by the buyer as opposed to the portion that is financed.
Escrow - A procedure in which a third party holds all funds, documents, etc. necessary to the sale.
FHA Loan - A loan insured by the Federal Housing Administration. FHA Insurance enables a lender to loan a very high percentage of the sale price.
Graduated Payment Mortgage - A mortgage that offers initial low payments which gradually increase as time goes on.
Hazard Insurance - Also known as Homeowners' Insurance. Usually a requirement of a mortgage lender and an advisable safeguard for your home.
Index or Rate Index - A measure of interest rate changes used to adjust the interest rate of an adjustable mortgage loan.
Lien - A legal claim or charge on a property as security for payment of a debt or for the discharge of an obligation.
Loan-to-Value Ratio - The ratio of the amount of a mortgage loan to the appraised value or selling price.
Lock Box - A key storage system placed on a home entrance that only a licensed real estate agent can access.
Margin - In Adjustable Mortgage Loans, the number of percentage points the lender adds to the index rate to determine the new interest rate at each adjustment.
MLS - Multiple Listing Service. A service in which member brokers cooperate in the sale of each other's listings.
PITI - Principal, Interest, Taxes, Insurance. Used to indicate the four major items included in a monthly mortgage.
Points - A fee charged by a lender as a service charge or as an amount needed to make the yield on a mortgage competitive with other types of investments.
Price Trend Analysis - A tool developed and used exclusively by Weichert, Realtors to help set a home's listing price by projecting local trends. Used in conjunction with a CMA. Because home values appreciate over time, a Price Trend Analysis maximizes listing prices.
Principal - The face value of a loan, not including interest.
Private Mortgage Insurance - Insurance issued by a private company against a loss by a lender in the event of a default.
Second Mortgage - A mortgage which ranks after the first mortgage lien in priorirty
Settlement - Same definition as closing.
Title Insurance - Insurance against loss resulting from defects of title of public record
VA Loans - Loans partially guaranteed by the Veteran's Administration, enabling veterans to buy a home for little or not down payment.
Required Documents
Listing Agreement - The usual form of contract between a broker and seller.
Purchase and Sale Agreements - Specifies all of the terms and conditions of the sale
Mortgage - The instrument by which a property is pledged to secure the payment of a debt or obligation, and is usually held by the lender.
Deed of Trust - Similar to a mortgage but is usually held "in trust" by a trustee
Real Estate Installment Sales Contract - Agreement between the buyer and seller which states the purchase price and method of payment, along with other obligations and duties.
Real Estate Title - Evidence of legal ownership of a property.
Deed - The document which transfers ownership of a property.
Loan Process
At WEICHERT, REALTORS® - Ron Gregory Sales and Auctions Financial Services, you will benefit by working with an experienced and knowledgeable Gold Services Manager.
Your personal Gold Services Manager has the ability to qualify you in minutes through "Weichert Home Express", our revolutionary point of sale loan approval system. Your Gold Services Manager is empowered to issue "on the spot" credit decisions for you, with the least amount of information required in the industry.
Our experienced processors and underwriters complete the streamlined loan process by receiving your property appraisal. Your Gold Services Manager can also introduce you to the convenience of acquiring your title insurance, and homeowners insurance through our Weichert affiliate companies, saving you time and effort and making your closing on a northern Tennessee home a truly seamless and hassle free experience.
Loan Application Checklist
- Original W-2 (2 years) and current month's pay stubs.
- Last 12 month's mortgage or rental history (cancelled checks).
- Employment addresses (2 year history).
- Contract of sale and legal description Last three months of bank statements.
- Loans: Lender name, address, account number and balance.
- Real Estate owned: Addresses, value and loan information
- Self-Employed: Two year's tax returns and YTD P&L
- Tax returns if bonus, commission or overtime income
- Social security numbers
- Checkbook or Visa/MC for required fees
- FHA: Driver's license or other photo ID
- VA: Certificate of eligibility
What to bring to your loan closing
- Your checkbook for any incidental costs
- Certified check for closing/settlement cost
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