Who's considering buying their first home this year? If so, the process can be a little intimidating if you're new to the home buying process and if you don't have a kind mortgage lender at the Lake of the Ozarks to talk to. Mortgage terms can be confusing. Our bank at the Lake of the Ozarks is here to help with that! Keep reading this week's blog for more mortgage term definitions. If you have any questions about any of this OR you're searching for your dream home and have no idea where to start in terms of a home loan, call First Bank of the Lake today. We can be reached at (573) 348-2265.
Common Mortgage Terms to Know: Part 4
Deed
The legal document conveying title to a real property.
Deed of Trust
An instrument used in many states in place of a mortgage. It is essentially an agreement between a lender and a borrower to give the property a neutral third party who will serve as a trustee. The trustee holds the property until the borrower pays off the debt.
Default
The failure to perform an obligation as agreed in a contract.
Delinquency
A loan payment that is overdue but within the period allowed before actual default is declared.
DeMinimus PUD
A Planned Unit Development (PUD) in which the common property has less than a 2% influence upon the value of the premises. The 2% rule of thumb is calculated by dividing the dollar amount of amenities by the total number of units.
Department of Housing and Urban Development (HUD)
A governmental entity responsible for the implementation and administration of housing and urban development programs. HUD was established by the Housing and Urban Development Act of 1965 to supersede the Housing and Home Finance Agency.
Department of Veterans Affairs (VA)
A cabinet-level agency of the federal government. The Servicemen's Readjustment Act of 1944 authorized the agency to administer a variety of benefit programs designed to facilitate the adjustment of returning veterans to civilian life. Among the benefit programs is the VA Home Loan Guaranty program, which encourages mortgage lenders to offer long-term, no down payment financing to eligible veterans by partially guaranteeing the lender against loss upon foreclosure.
Deposit
A sum of money given to bind a sale of real estate. Also known as earnest money.
Depreciation
A loss of value in real property brought about by age, physical deterioration, functional or economic obsolescence.
Disclosure
Information relevant to specific transactions that is required by law.
Discount Point
A point paid to the lender to permanently buy down or lower an interest rate. It is usually a percentage of the loan amount.
Down Payment
Money paid to make up the difference between the purchase price and the mortgage amount.
Looking For Your Dream Home? First Bank of the Lake Puts You First.
We hope you found this blog enlightening and helpful when it comes to the home loan process. If you are searching for your dream home, connect with an experienced mortgage loan officer at the Lake of the Ozarks to get your questions answered about this process. No questions are off the table, ask away! We can be reached at the phone number listed below. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.
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