Are you looking to buy your dream home at the Lake of the Ozarks this year? There can be A LOT that goes into the mortgage process. If you've never bought a home before, please don't get overwhelmed by all of the information. Our mortgage lenders at the Lake of the Ozarks are here to help you. We will answer any question you may have. Call First Bank of the Lake today at (573) 348-2265. Keep reading this week's blog to learn more about some of the common mortgage terms that you need to know.
Common Mortgage Terms to Know: Part 3
Cash
Currency, checks and other negotiable instruments acceptable for direct deposit by a bank.
Cash Out Refinancing
When the principal amount of a new mortgage involved in refinancing is greater than the principal amount outstanding of the existing mortgage being refinanced, and all or a portion of the equity is converted to cash.
Cash Reserve
A requirement by some lenders that buyers have sufficient cash remaining after closing to make the first mortgage payment.
Cash to Close
Liquid assets that are readily available to be used to pay the closing costs involved in a closing of a mortgage transaction.
Closing
The consummation of a real estate transaction. The closing includes the delivery of a deed, financial adjustments, the signing of notes, and the disbursement of funds necessary to complete the sale and loan transaction.
Closing Costs
Money paid by the borrower in connection with the closing of a mortgage loan. This generally involves an origination fee, discount points, appraisal, credit report, title insurance, attorney's fees, survey, and pre-paid items such as tax and insurance escrow payments
Closing Statement
A form used at closing that gives an account of the funds received and paid at the closing, including the escrow deposits for taxes, hazard insurance, and mortgage insurance.
Co-Borrower
Additional borrower(s) whose income contributes to qualifying for a loan and whose name(s) appears on documents with equal legal obligations.
Co-mortgager
A second borrower who signs a mortgage loan with a mortgagor. The co-mortgagor's income, assets and debts are combined with the mortgagor's for underwriting and ratio analysis purposes. The co-mortgagor's name must appear on the FHA Certificate of Commitment and the mortgage or deed of trust. For full guarantee under the VA's program, the co-mortgagor must be either a spouse or another eligible veteran.
Collateral
Property pledged as security for a debt, such as the real estate pledged as security for a mortgage.
Collection
The servicing procedure followed to bring a delinquent mortgage current and to file the required notices to bring foreclosure when necessary.
Commitment (Loan)
A binding pledge made by the lender to the borrower to make a loan, usually at a stated interest rate within a given period of time for a given purpose, subject to the compliance of the borrower to stated conditions.
Commitment Fee (Loan)
Any fee paid by a potential borrower to a lender for the lender's promise to lend money at a specified rate and within a given time period.
Commitment Letter
A formal offer by a lender stating the terms under which it agrees to loan money to a homebuyer.
Comparable Properties
Properties used for comparative purposes in the appraisal process that have been recently sold and have characteristics similar to property being appraised, thereby indicating the approximate fair market value of the subject property.
Compensating Factors
Positive characteristics of a borrower's credit, employment or savings history which may be used to offset high debt-to-income ratios in the underwriting process.
Concession
A discount or other inducement given by a landlord or seller to a prospective tenant or buyer to induce them to sign a lease or purchase property.
Conforming Loan
Conventional home mortgages eligible for sale and delivery to either the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC). These agencies generally purchase first mortgages up to loan amounts mandated by Congressional directive.
Contingency
A condition that must be met before a contract is legally binding.
Conventional Mortgage
A mortgage not obtained under a government insured program (such as FHA or VA).
Convertible ARM
An adjustable-rate mortgage that can be converted to a fixed-rate mortgage under specified conditions.
Credit Report
A report detailing an individual's credit history.
Buy YOUR Dream Home With First Bank of the Lake Today!
Our mortgage specialists at the Lake of the Ozarks are here to help you in any way we can. Buy your dream home today with people that will be here for you every step of the way. If you have questions know that no questions are bad questions. You shouldn't be afraid to ask what you need to know. Give us a call today at the phone number listed below if you're ready to buy your dream home. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.
