Page 12 - Pre-Approval Folder

Mortgage Glossary Con.

Escrow Instructions VA
The contract that authorizes an escrow agent to Offers financing to veteran, active duty service mem-
deliver items deposited in escrow once the par- bers or spouses of service members killed in the line of
ties have complied with specified conditions. duty.

Clear to Close HomeStyle
All of the conditions necessary to make the loan Allows you to buy a home in need of repair or refinance
have been satisfied and the lender gives the final an existing home and include funds needed for repairs
approval to schedule the closing.

Closing HomeReady
The final stage in a real estate transaction where Offers financing to creditworthy low-to-moderate in-
ownership of real property is transferred from sell- come borrowers to purchase/refinance single-family
er to buyer according to the terms and conditions properties.
set forth in a sales contract or escrow agreement.
This would include signing a formal document
and exchange and payment of required closing
fees.

Closing costs
In addition to the down payment, you’ll also have Ask me about
miscellaneous fees charged by those involved
with the home sale. STATE-SPECIFIC

Types of Mortgages assistance programs!

FHA
Federal Housing Administration.

FHA loan
Loans extended by FHA-approved lenders typi-
cally are designed to assist borrowers unable for
various reasons to get the approval necessary for
conventional home loans.

203K FHA Loan
The FHA-insured loan program that allows a buy-
er to buy property and borrow extra money to re-
pair it. Type of rehabilitation loan.

Conventional mortgage
A mortgage offered by any one of the Govern-
ment sponsored entities, different from
an FHA or VA loan. These are typically 30-year
fixed-rate loans.