An amount of money owed by one person, company, organization or other entity to another.
The percentage of your total debt compared to your total income before taxes. Lenders often have debt and income ratio guidelines they follow when considering a consumer's request for credit.
A document that legally transfers ownership of real estate from a seller to a buyer. It's delivered to the buyer at closing. Before making a mortgage loan, a lender will usually require a title search or a title report to make sure the real estate that is to secure the loan is legally owned by the borrower or seller.
When a borrower voluntarily conveys the property to the lender. This is done to satisfy a debt and avoid foreclosure. Also called a voluntary conveyance.
Failure to make mortgage payments on time or to meet other terms of the loan documents. Default can lead to foreclosure.
Failure to make payments on time.
A decline in the value of property due to wear and tear or any other reason. The opposite of appreciation.
Written information given to consumers about their loans.
The date on which your loan documents are prepared for closing.
The amount of cash you pay to the seller toward the purchase of your home that constitutes the difference between the purchase price of your home and your mortgage loan. Minimum down payment requirements often range between 10% and 30% of the sales price depending on many factors, including your loan product, your lender's underwriting policy, and your credit history.
A provision in a mortgage home loan that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the loan.