Real Estate Terms

Prudential C. Dan Joyner Co., Realtors. A member of the Prudential Real Estate network (www.prudentialrealestate.com).

Also known as PMI, mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent. This is applicable with conventional loans and once the value of the property had exceeded 80% of its' original appraised/contract value, the loan can be adjusted to drop the PMI portion of the payment. This is not automatic, however. Some lenders require a new appraisal or a broker-price-opinion that can be provided by a Realtor.

A loosely used term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will actually be at the time the loan is actually made, as well as estimates for the amount that will be paid for property taxes, insurance and others. A pre-approval applies only to the borrower. Once a property is chosen, it must also meet the underwriting guidelines of the lender. Contrast with pre-qualification.

This usually refers to the loan officer's written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower.

This usually refers to the loan officer's written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower.

Also known as PMI, mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent. This is applicable with conventional loans and once the value of the property had exceeded 80% of its' original appraised/contract value, the loan can be adjusted to drop the PMI portion of the payment. This is not automatic, however. Some lenders require a new appraisal or a broker-price-opinion that can be provided by a Realtor.

A written promise to repay a specified amount over a specified period of time.