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
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.