Sidebar
Glossary
This is when your application for your mortgage has been approved by your lender, subject to further checks. These are likely to be checks on your income and the value of the property.
A feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, greenery, water) or man-made (like a swimming pool or garden).
A loan for which the principal and the interest are payable in monthly or other periodic installments over the term of the loan.
Repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years).
Calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan.
The first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process.
A document that gives an estimate of a property’s fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.
A qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.
Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the Change in monthly-payment amount, however, is usually subject to a Cap.
A fee your lender will charge you for arranging your mortgage. It can be paid on completion or included in your mortgage loan.