A fee lenders often charge if the borrower chooses to buy the interest rate down.
A commitment by a lender to make a mortgage loan to a specified borrower, prior to the identification of a specific property. It is designed to make it easier to shop for a house. Most sellers require a pre-approval letter to be submitted with an offer to verify the buyers can obtain financing for the property.
A payment made by the borrower over and above the scheduled mortgage payment.
A charge imposed by some lenders if the borrower pays off the loan early. The charge is usually expressed as a percent of the loan balance at the time of prepayment, or a specified number of months interest. Prepayment penalties and charges are becoming less common.
Compiling and maintaining the file of information about a mortgage transaction, including the credit report, appraisal, verification of employment and assets, and so on. This part of the loan process takes place before underwriting.
Buying a property and selling it shortly thereafter for a higher price.