One of INHP's main goals is to educate clients on every step of the homebuying process. Beyond advising programs and classes, this online resource page features hot housing topics and defines some of those tricky lending industry terms.
Fees associated with the home purchase transaction. Typical closing costs include charges for the mortgage loan such as origination fees, discount points, appraisal fee, survey, title insurance, legal fees, real estate professional fees, prepayment of taxes and insurance, and real estate transfer taxes.
A credit score is one factor creditors consider to decide whether to approve your request for credit. It is a number that is attached to your credit report and typically ranges from 350-850. The higher your score, the less risk you are to the creditor and the more likely you are to receive an approval on your request for credit.
An insurance policy that combines protection against damage to a dwelling and its contents including fire, storms or other damages with protection against claims of negligence or inappropriate action that result in someone’s injury or property damage.
The number of monthly payments required to pay back the loan completely. Maximum income/AMI: The U.S. Department of Housing and Urban Development (HUD) sets income limits that determine eligibility for assisted housing programs. The limits are based on Area Median Income (AMI).
Typically, borrowers making a down payment of less than 20 percent of the purchase price of the home will need to pay for mortgage insurance. Mortgage insurance lowers the risk for the lender, so you can qualify for a loan that you might not otherwise be able to get.
This is one way lenders measure one’s ability to manage monthly payments and repay debts. This is calculated by dividing the projected housing payment and other monthly obligations by gross monthly income and is expressed as a percentage.
A percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. The funding fee is typically financed into the loan.