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Las Vegas Real Estate |
Las
Vegas Real Estate Glossary
Debt
An amount owed to another. See installment
loan and revolving liability.
Deed
The legal document conveying title
to a property.
The deed is the document that transfers ownership from the seller to you. Only the seller signs the deed at closing, and you'll receive a copy of it.
The closing agent will record the
deed with you listed as the new property owner. Your name and the names
of any other buyers appear on the deed, and it will be sent to you after
it is recorded.
Deed-in-lieu
A deed given by a mortgagor to the
mortgagee to satisfy a debt and avoid foreclosure. Also called a "voluntary
conveyance."
Deed of Trust
The document used in some states
instead of a mortgage; title is conveyed to a trustee.
In some states, a "deed of trust"
is used instead of a mortgage. When homeowners sign a deed of trust, they
receive title to the property but convey title to a neutral third party
- called a trustee - until the loan balance is paid in full.
Default
Failure to make mortgage payments
on a timely basis or to comply with other requirements of a mortgage.
Delinquency
Failure to make mortgage payments
when mortgage payments are due.
Department of Veterans Affairs (VA)
An agency of the federal government
that guarantees residential mortgages made to eligible veterans of the
military services. The guarantee protects the lender against loss and thus
encourages lenders to make mortgages to veterans.
The Veterans Administration is a federal government agency authorized to guarantee loans made to eligible veterans under certain conditions. To obtain more information, you can contact the U.S. Department of Veterans Affairs.
The VA guarantee allows qualified veterans to buy a house costing up to $203,000 with no down payment. Moreover, the qualification guidelines for VA loans are more flexible than those for either the Federal Housing Administration (FHA) or conventional loans.
If you are a qualified veteran, this
can be an attractive mortgage program. To determine whether you are eligible,
check with your nearest VA regional office.
Deposit
A sum of money given to bind the
sale of real estate, or a sum of money given to ensure payment or an advance
of funds in the processing of a loan. See earnest money deposit.
Depreciation
A decline in the value of property;
the opposite of appreciation.
Desktop Underwriter®
Desktop Underwriter is Fannie Mae's
innovative, computer-based, automated underwriting system.
After you complete a loan application with a Fannie Mae-approved lender, your loan will be underwritten -- using Desktop Underwriter -- by the lender. Underwriting is the process used to determine whether borrowers can afford the mortgage payment on the loan for which they are applying and their ability to repay the mortgage on a timely basis. In the past, underwriting was a manual process. An underwriter would review the information, analyze the data, and approve or deny the loan. The process typically took between 30 and 60 days.
With Desktop Underwriter, the underwriting process can take minutes. Desktop Underwriter automates the process for lenders by requesting information online and then analyzing the borrower's loan application and credit history data, as well as the property information. Desktop Underwriter performs this objectively and without bias, and returns the results of the analysis to the lender in the form of a recommendation. The lender then uses the recommendation returned by the system to decide whether to approve or deny the loan.
Detached Single-Family Home
The most traditional type of single-family
home is one that is "detached." This type of home stands separate from
any other housing structure and serves as a place of residence for the
occupants.
Direct Leveraging Loan Program
The Direct Leveraging Loan Program
makes it easier and more economical for rural residents to own a home through
lower interest rates and no down payment.
Under this program, the lender offers up to 50 percent of the mortgage amount as a conventional 30-year, fixed-rate first mortgage and the Rural Housing Service (RHS) offers the balance as a second mortgage at an interest rate that is generally below market.
The RHS is part of the U.S. Department
of Agriculture.
Discount Points
Discount points are often used to
describe a type of fee that lenders charge. Discount points are additional
funds you pay the lender at closing to get a lower interest rate on your
mortgage.
A point equals 1 percent of the loan amount. So, if you and your lender agree to a mortgage of $100,000, one point would equal $1,000.
Typically, each point you pay for a 30-year loan lowers your interest rate by .125 of a percentage point. If the current interest rate on a 30-year mortgage is 7.75 percent, paying one point would lower the interest rate to 7.625.
Ask your lender if you have the option of paying 1, 2, or 3 discount points – or you can choose not to pay any discount points. It often makes more sense to pay discount points if you plan to stay in your home for a long time.
Discount points are often used to describe a type of fee that lenders charge. Discount points are additional funds you pay the lender at closing to get a lower interest rate on your mortgage.
A point equals 1 percent of the loan amount. So, if you and your lender agree to a mortgage of $100,000, one point would equal $1,000.
Typically, each point you pay for a 30-year loan lowers your interest rate by .125 of a percentage point. If the current interest rate on a 30-year mortgage is 7.75 percent, paying one point would lower the interest rate to 7.625.
Ask your lender if you have the option
of paying 1, 2, or 3 discount points – or you can choose not
to pay any discount points. It often makes more sense to pay discount points
if you plan to stay in your home for a long time.
Dower
The rights of a widow in the property
of her husband at his death.
Down Payment
The part of the purchase price of
a property that the buyer pays in cash and does not finance with a mortgage.
Saving for a down payment is usually one of the most difficult parts of preparing to buy a home. If you believe you have the needed funds, you are in a better position to seek pre-qualification from a lender to get the mortgage that is right for you.
Most homeowners rely on a mortgage from a financial institution, and most mortgage products require buyers to include a portion of their own funds towards the purchase of the home. This is called the down payment. Lenders feel more secure when buyers include a down payment, indicating they are less likely to walk away from their investment if their finances take a downturn.
Historically, buyers usually made a down payment that totaled 20 percent of the home’s purchase price. Under this scenario, a down payment for a $100,000 home is $20,000. But today, new mortgage products allow buyers to put down as little as 3 percent to 5 percent, provided private mortgage insurance is obtained. The down payment for a $100,000 home with 5 percent down payment is just $5,000.
Sources for down payments may come from buyers’ savings accounts, checking accounts, stocks and bonds, life insurance policies, and gifts.
When you select your lender, ask
about Fannie Mae's low down payment mortgages.
Due-on-sale Provision
A provision in a mortgage that allows
the lender to demand repayment in full if the borrower sells the property
that serves as security for the mortgage.
Due-on-transfer Provision
This terminology is usually used
for second mortgages. See due-on-sale provision.
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