IMPORTANT TERMS TO KNOW:


APPLICATION -        A standard form that the borrower(s) completes which thoroughly provides all relevant information about the borrower(s) and subject
property required to underwrite the loan. The broker or lender may assist in completing this form based on information obtained directly from the borrower
(s) or other agencies on behalf of the borrower(s).

APPRAISAL-        Collateral valuation of the subject property to determine market value used in underwriting to determine if the collateral is sufficient for the
loan that has been applied for.

Points -          Each point is equal to 1% of the financed loan amount.

ASSETS -             This will include both LIQUID and NON-LIQUID ASSETS.
  • LIQUID ASSETS -  Assets that are easily convertible to cash. Acceptable form of Liquid Assets are: Bank accounts (Checking, savings, Money      
    Market Accounts, Certificates of Deposits, Etc.), Stocks, Bonds, Annuities, Individual Retirement Accounts (IRA), 401K Retirement plans, and Mutual
    Funds.
  • Non LIQUID ASSETS - Assets that may be of value but can not be convertible into cash readily. Some examples are: Automobiles, Boats, Etc.

GOOD FAITH ESTIMATE (GFE) -        An estimate of all costs associated with the loan transaction. Although a Good Faith Estimate is an estimate, it should
be complete, accurate, and based on actual costs

TRUTH IN LENDING -        The Truth in Lending is provided by the loan officer - the document details loan information such as Loan Amount (Amount
Financed), Annual Percentage Rate, Closing Costs, and Proposed Housing Payment.

MORTGAGE -        A legal binding document that pledges property to a lender as security for the repayment of debt. The term is also used to refer to the
loan itself.

NOTE -        A legal document that obligates a borrower(s) to repay a mortgage loan at the stated interest rate during a specified period of time.

PURCHASE AGREEMENT-        An Agreement between seller(s) and buyer(s) for the sale/transfer of a property that details the terms of the purchase.

TITLE COMMITMENT -        Title insurance is the insurance that protects the lender (Lender's Policy) or the buyer (Owners Policy) against loss arising from
disputes over ownership of a property.

TRANSFER SERVICING RIGHTS -        Notice to borrower that servicing of loan may be sold.

MORTGAGE INSURANCE (MI) -        Whether Private (PMI) or Government (GMI), Mortgage insurance is required on all loans when the amount of mortgage
is over 80% of the Purchase price or Fair Market Value (which ever is less). An MI Certificate is issued by the insurance provider to details the interest rate
and percentage of coverage. Mortgage Insurance comes in Several Forms:
  • BORROWER PAID MORTGAGE INSURANCE (BPMI). Can be cancelled and presents an additional payment.
  • LENDER PAID MORTGAGE INSURANCE (LPMI). Can not be cancelled and presents an increase in the interest rate to the Borrower.
  • SINGLE FINANCED MORTGAGE INSURANCE (SFMI), Can be Cancelled & Does not Present an increase in the Rate of Payments. However, the
    entire premium must be paid at the time of Closing. If the Coverage is cancelled, a prorated refunded will be issued.
** MI premiums will be 100% tax deductible for households earning $100,000.00 or less in Adjusted Gross Income. MI is automatically cancelled once
the loan balance reaches 78% of the property value. You can request the MI cancellation if you believe that your property value appreciated and your
current loan balance is at or below 80% of the value. However, you must bring a new appraisal to your lender and they must agree with the value.


Please note that on most FHA LOANS, The first full year premium is collected at closing or financed with your loan. Additionally, a monthly premium is
added to the monthly mortgage payment.

RIGHT TO CANCEL -        Disclosure informs the borrower(s) of their right to rescind (Cancel) on a refinance transaction. By law, any homeowner
refinancing a home ( whether or not a current mortgage is being paid off) is subject to the 3 days rescission period. The RESCISSION PERIOD cannot be
WAIVED.

Jumbo Loan Limits:   

  • The current Conforming Loan limit is $417,000
  • If you are borrowing more than the Conforming Loan Limit, your loan is a Jumbo Loan.
  • Jumbo Loans do not fit the Conforming Loan Criteria regardless of credit history and other qualifying criteria. Therefore, you will be subject to
    a higher interest rate and additional qualification conditions.

HR 3221, The Housing and Economic Recovery Act of 2008 was passed and signed into law on July 29, 2008. Some important aspects of the bill to
note are:

  • LOAN ORIGINATORS REQUIREMENTS:        All loan originators must go through a criminal back ground check and register with the NATIONWIDE
    MORTGAGE LICENSING SYSTEM (NMLS) and REGISTRY (NMLR). Please check to make sure your mortgage originator is registered before you
    commit to dealing with that individual or business entity.
  • SELLER FUNDED DOWN PAYMENTS:                                       All seller funded Down payments are prohibited as of OCTOBER 1, 2008
Codifies existing  FHA proposal to prohibit the use of down payment assistance programs funded by those who have a financial interest in the sale: Does
not prohibit other assistance programs provided by non-profits funded by other sources, churches, employers, or family members.


Licensed by the PENNSYLVANIA Department of Banking
Registered by Nationwide Mortgage Licensing System
Licensed Mortgage Broker # 20402 N.M.L.S. Entity ID # 101916
Licensed Loan Originator # 30080 N.M.L.S. Entity ID # 135328
Homeownership
Affordable
Refinancing
Program

Property Value no issue if your current mortgage  
has not been refinance since 6/1/2009

Refinance today!
100% Financing is
available for properties
located in certain areas.
* USDA restrictions apply.