Terms
Appraised Value vs. Assessed Value
Appraised value: An appraised value is an evaluation of a property’s value performed by a professional appraiser. The value is based on factors such as location, access to amenities, condition and ...
Asset
An asset is anything of value, or a resource of value, that is taken into consideration to determine what you qualify for and how you would be able to continue making mortgage payments if you lost ...
Clear to Close
Your loan is clear to close when an underwrite has approved your loan documents and any conditions that were required, for the loan to be approved, have been met. At this point we are ready to sche...
Closing Costs
Closing costs are usually somewhere between 2% and 5% of the loan amount and include fees such as origination fee, mortgage points, title insurance, home appraisal, property taxes and real estate c...
Down Payment
A down payment is a percentage of the total price, which is paid in cash up front, with the remainder of the amount covered in the mortgage loan.
Earnest Money Deposit (EMD)
An EMD is an initial deposit made in good faith, and put into escrow, that shows the seller how serious you are about purchasing the home.
Escrow
Escrow is a legal arrangement in which a third party temporarily holds large sums of money, or property, until a particular condition has been met (e.g., the fulfillment of a purchase agreement).
Fixed-Rate vs. Adjustable-Rate
Fixed-Rate: A fixed-rate mortgage means that your rate remains the same for the term of the loan. Adjustable-Rate: With an adjustable-rate mortgage, the rate is fixed for an initial period, but a...
Interest Rate vs. Annual Percentage Rate (APR)
Interest Rate: The interest rate is the cost you will pay annually to borrow the money. APR: An annual percentage rate reflects the interest rate, closing costs, mortgage points, origination fees, ...
Lock
When you lock a rate, it means your interest rate won’t change for a specified period. Typically, that is the time between approval and closing.
Mortgage Points
Fees that you pay to lower your interest rate on your loan.
Qualifying Income
Income for a mortgage is considered qualifying if it is consistent and likely to continue. For example, a second job or commission income would require a two-year history to apply as qualifying inc...
Reserves
Reserves are savings that will be intact after you close on your home. This helps to ensure that you will be able to pay your loan if you experience a life event that causes a loss of income.
Seller Concession
A seller concession is typically when the seller agrees to pay all, or some, of the buyer’s closing cost in the transaction.
Equal Housing Lender | © 2010-2023 Semper Home Loans Inc. NMLS #1053