Credit report
A record that lists all past and present debts and the timeliness of their repayment it documents an individuals credit history.

Homeowners insurance
An insurance policy that combines protection against damage to a dwelling and Is contents with protection against claims of negligence r inappropriate action that result in someones injury or property damage.

Rehabilitation mortgage
A mortgage that covers the costs of rehabilitating repairing or Improving a property some rehabilitation mortgages - like the FHAs 203k - allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.

Closing costs
Customary costs above and beyond the sale price of the property that must be paid to cover the transfer of ownership at closing these costs generally vary by geographic location and are typically detailed to the borrower after submission of a loan application.

Bankruptcy
A federal law Whereby a persons assets are turned over to a trustee and used to pay off outstanding debts this usually occurs when someone owes more than they have the ability to repay.

Balloon Mortgage
A mortgage that typically offers low rates for an initial period of time usually 5 7 or 10 years after that time period elapses the balance is due or is refinanced by the borrower.

RESPA Real Estate Settlement Procedures Act
A law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs practices and relationships

Good faith estimate
An estimate of all closing fees including pre-paid and escrow items as well as lender charges must be given to the borrower within three days after submission of a loan application.

Earnest money
Money put down by a potential buyer to show that he or she is serious about purchasing the home it becomes part of the down payment if the offer is accepted is returned if the offer is rejected or is forfeited if the buyer pulls out of the deal.

Offer
Indication by a potential buyer of a willingness to purchase a home at a specific price generally put forth in writing.