Helpful Home Buyer Information Booklet

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Real Estate Definitions & Abbreviations, ctd. Lien A charge upon property for the payment of debt or obligation. Lis Pendens A recorded notice that litigation (a lawsuit) is pending, which may affect the title of the real estate involved. Mechanic’s Lien Statutory lien in favor of laborers and material suppliers who have performed work or furnished materials or supplies to a work of improvement. If not paid, they have the right to record a lien within a prescribed period of time. Notice of Completion Notice recorded under the California mechanic’s lien law within ten days after completion of a structure; it shortens the time to file a mechanic’s lien. Notice of Default DEFAULT—NOD Recorded notice that a default has occurred under a deed of trust. It is the first step in non-judicial foreclosure of a deed of trust. Notice of Rescission RESCISSION A recorded notice to rescind a notice of default of a mortgage or deed of trust. Notice of Trustee Sale NT TRUSTEE SALE Foreclosure sale conducted by the trustee under a deed of trust after a default occurs. Power of Attorney (POA) Instrument used to appoint an attorney-in-fact Quitclaim Deed A deed used to transfer any interest in real property that the grantor may have. It contains no warranties of any kind. Release An instrument releasing property from the lien of the mortgage, judgment, etc. When a trust deed is used, the instrument is called a reconveyance. In some areas, a “discharge” is used instead of a release. Request for Notice of Default REQUEST NOD A recorded notice made by the beneficiary of a trust deed that he be notified in the event that foreclosure proceedings are commenced by another party. State Tax Lien A lien attaching to property for nonpayment of state income tax. Subordination Agreement SUBDN AGMT Agreement under which a prior or superior lien is made inferior or subject to an otherwise junior lien. Substitution of Trustee SUBSTN TRUSTEE Written instrument by which title to land is transferred to a trustee as security for a debt or other obligation Trustee’s Deed Deed given by the trustee when property is sold under the power of sale in a trust deed Uniform Commercial Code Financing Stmnt. UCC FINANCING STMT In California, evidence of a personal property security agreement that may be filed under prescribed conditions
Loan Definitions & Abbreviations Adjustable Rate Mortgage ARM Rate is fixed for a period of time (typically 3-10 years) then adjustable Annual Percentage Rate APR The cost of the loan in percentage terms taking into account estimated charges over the life of the loan (typically higher than the Note Rate) Buy & Bail When you currently own your primary residence, and are planning on purchasing a new one Closing Disclosure Replaces HUD1. Final closing document generated by lender and settlement agent. Outlines transaction. Combined Loan-to-Value Ratio CLTV The ratio of all loans to the property value and sales price Co-Borrower Additional borrowers on the loan who may or may not occupy the property Down Payment <strong>Buyer</strong>’s contribution to purchase property (does not include closing costs. Minimum 3% Debt-to-Income Ratio DTI The total of payments and obligations to income on a monthly basis Escrow Officer Neutral third party individual to transaction who coordinates documentation and funds Escrow Period Time frame set in your purchase contract to close the transaction Fixed Rate Rate and payments are fixed for the entire term of the loan Impounds Payment of taxes and insurance monthly with the mortgage payment. This is not required on all loans Loan Estimate (LE) Upfront disclosure outlines, estimated fees, costs, and structure of transact tion. Loan Officer Agent representing the buyer as borrower for loan programs and funds Loan-to-Value Ratio LTV The ratio of the loan amount to the property value and sales price Monthly Mortgage Insurance MMI or MIP Charged by FHA (.45% - 1.5% depending on your parameters) PITIA Principal + Interest + Taxes + Insurance + Association Dues Private Mortgage Insurance PMI Required with less than 20% down payment on conventional loans Points 1 point = 1% of loan amount. Typically charged to reduce your interest rate Pre-Approval <strong>Buyer</strong> completed a full application and provides supporting documentation
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Austin Lampson Sr. Mortgage Consult
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Congratulations! You’ve just take
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www.austinlampson.com Meet Team Lam
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Page 17 and 18: The Life of a Loan Prepare Loan App
Page 19 and 20: Credit Credit Report Ordered A cred
Page 21 and 22: How to Maximize Your Credit Score Q
Page 23 and 24: Appraisal Depending on the length o
Page 25 and 26: Closing Costs Purchase or refinance
Page 27: TRID: What you need to know
Page 30 and 31: What is APR? The APR reflects the c
Page 35 and 36: Escrow Ausn Lampson, NMLS #517060 1
Page 37 and 38: What is Escrow? An escrow is create
Page 39 and 40: The Escrow Process—Day by Day Bas
Page 41: Life of an Escrow Prepare Escrow In
Page 44 and 45: Responsibilities of Each Party Buye
Page 46: Common Escrow Questions, ctd. What
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Page 52 and 53: Reasons for Title Insurance 1. Titl
Page 54 and 55: Homeowners Insurance Condo You may
Page 58 and 59: What is Proposition 13? Those who h
Page 60: Tax Write-Off In order to encourage
Page 68 and 69: Loan Definitions & Abbreviations, c
Page 70 and 71: Utilities, ctd. City of Santa Barba
Page 74 and 75: Moving Checklist, ctd. Two Weeks Pr
Page 76 and 77: Security Checklist
Page 78 and 79: Loan Choice
Page 80 and 81: Loan Choice
Page 82 and 83: Loyalty Agreement Ausn Lampson, NML
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Helpful Home Buyer Information Booklet

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