CLOSING COSTS - These are costs which are not controlled by the lender, and are required for anyone purchasing a home regardless of loan amount or lender. These include expenses such as attorney fees, title insurance, survey, recording fees, appraisal, and termite inspection. All of these services are provided by independent professionals who are not affiliated with your lender. You can usually figure on your closing costs being approximately one to one & a half percent of your loan amount.

COMPARABLES - Properties used in an appraisal report that are substantially equivalent to the subject property.

CONVENTIONAL LOAN - A loan that may or may not require Private Mortgage Insurance. (Any loan amount with 20% or more down payment will not require PMI. Any loan amount with zero or 3% - 19% down payment will require PMI.) This type of loan is subject to the qualifying guidelines set forth by FNMA (Fannie Mae) or FHLMC (Freddy Mac).

CREDIT HISTORY - This is a "snap-shot" of your past and present debt, current available credit, and a rating of your debt repayment history. This is very important to a lender so that they can know if you are a good credit risk.

CREDIT REPORT - A document completed by a credit-reporting agency providing information about the buyer's credit cards, previous mortgage history, bank loans and public records dealing with financial matters.

DEED - The formal written document that transfers the rights of ownership and possession (that is, the title) from the seller to the buyer.

DISCOUNT POINT - A unit of measurement used for various loan charges; one point equals one percent of the amount of the loan. More...