The real estate market has BOOMED at the Lake of the Ozarks this year! There are more buyers now than there have been in a LONG time. That being said, if you're looking to buy your first home this year, this is the blog for you! Our mortgage loan officers at the Lake of the Ozarks are here to give you a few more common mortgage terms you should know and keep top of mind throughout your buying process. If you have any questions, call First Bank of the Lake today. We can be reached at (573) 348-2265.
Common Mortgage Terms to Know: Part 6
Fair Credit Reporting Act (FCRA)
This law requires consumer reporting agencies to exercise fairness, confidentiality and accuracy in preparing and disclosing credit information.
Federal Home Loan Mortgage Corporation - FHLMC (FREDDIE MAC)
A quasi-governmental agency that purchases conventional mortgages in the secondary mortgage market from insured depository institutions and HUD-approved mortgage bankers. It sells participation sales certificates secured by pools of conventional mortgage loans, their principal, and interest guaranteed by the federal government through the FHLMC. It also sells Government National Mortgage Association bonds to raise funds to finance the purchase of mortgages. Popularly know as Freddie Mac.
Federal National Mortgage Association - FNMA (FANNIE MAE)
A taxpaying corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA) as well as conventional home mortgages.
Fee Simple
The greatest possible interest a person can have in real estate, including the right to dispose of the property or pass it on to one's heirs.
First Mortgage
A real estate loan that has priority over any subsequently recorded mortgages.
Fixed-rate Mortgage (FRM)
A mortgage in which the interest rate and payments remain the same for the life of the loan.
Foreclosure
A legal procedure in which property mortgaged as security for a loan is sold to pay the defaulting borrower's debt.
Gift Letter
A written explanation signed by the individual giving the gift stating, "This is a bona fide gift and there is no obligation expressed or implied to repay this sum at any time."
Ginnie Mae
Created in 1968 by an amendment to Title III of the National Housing Act (12 USC 1716 et seq.), this federal government corporation is a constituent part of the Department of Housing and Urban Development. Among other governmental functions, it guarantees securities backed by mortgages that are insured or guaranteed by other government agencies. Also called Government National Mortgage Association (GNME).
Good Faith Estimate (GFE)
A document which tells borrowers the approximate costs they will pay at or before settlement, based on common practice in the locality. Under requirements of the Real Estate Settlement Procedures Act (RESPA), the mortgage banker or mortgage broker, if any, must deliver or mail the GFE to the applicant.
Gross Monthly Income
Total monthly income earned before tax and other deductions
Do You Have A Question About Mortgages?
If this is your first time buying a home, we are here for you! Our mortgage loan professionals in Osage Beach put you first! Give us a call 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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