A Glossary of Mortgage Terms

Handling a Dispute on Your Credit Report

Fannie Mae is no longer allowing any credit report items to contain a “dispute”. If you are thinking of purchasing a home or refinancing, and have a ‘disputed’ item on your credit report, please follow these general guidelines. If the consumer initiated the original...
A Glossary of Mortgage Terms

Improving Your Credit Score

The most widely used credit scores are FICO scores, which were developed by Fair Isaac & Company, Inc. (and they’re named after their inventor.) Your FICO score is between 350 (high risk) and 850 (low risk). Past delinquencies, derogatory payment behavior,...
A Glossary of Mortgage Terms

Holding Title

Before you reach the closing day on your home purchase, you will want to make a decision as to how you will “hold title” to the property. This decision has legal, tax and estate planning ramifications. Therefore, it may be prudent to consult an attorney or...
A Glossary of Mortgage Terms

Closing Costs

The Good Faith Estimate is a document that you will receive notifying you of estimated fees in obtaining a new mortgage. Fees are classified into two categories: non-recurring closing costs and recurring closing costs. The estimates given for the non-recurring closing...
A Glossary of Mortgage Terms

Tax Deductions

Deductible Homeowners Expenses One of the advantages of owning your own home is that the home mortgage interest and real estate taxes paid can be deducted from your federal income tax.* To do so, youll need to comply with current tax laws and complete the appropriate...
A Glossary of Mortgage Terms

Down Payments

Verifying Assets for Your Down Payment, Closing Costs, and Reserve A critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs and reserves. Down Payment and Closing Costs Documenting that the down payment...
A Glossary of Mortgage Terms

How Escrow Works

Title and escrow services are typically performed by the same company in Northern California and Nevada. In other areas, these services may be performed by two separate companies or by an attorney. To finalize the sale of the home a neutral, third party (the escrow...