Glossary D   A B C    E F G H I J K L M

Debt - An obligation to pay another.

Deed - The written instrument that conveys a property from the seller to the buyer. The deed is recorded at the local courthouse so that the transfer of ownership is part of the public record.

Default - A breech of the agreement with a lender such as the failure to make loan payments in a timely manner.

Delinquency - The failure to make payments on debts when they are due.

Deposit - Funds required by a lender in advance of the processing of a loan request. Generally a deposit is collected to cover the costs of an appraisal and credit report and may or may not be refundable.

Disclosures - Information that must be given to consumers about their financial dealings.

Discount Points - Fees that are collected by the lender in exchange for a
lower interest rate. Each discount point is 1% of the loan amount. For comparison purposes, a discount point is considered to be a lender fee. To determine if it is wise to pay discount points to obtain a lower rate, you must compare the up front cost of the points to the monthly savings that result from obtaining the lower rate. Sometimes referred to simply as "points."

Document Preparation - Lenders will prepare some of the legal documents that you will be signing at the time of closing, such as the mortgage, note, and truth-in-lending statement. This fee covers the expenses associated with the preparation of these documents. The document preparation charges are considered to be a lender fee.

Down Payment - The portion of the purchase price of a property that the borrower will be paying in cash rather than included in the mortgage amount.

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