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Denial of credit or loan

When a lender refuses a loan because they believe the borrower may not be able to repay it

Bridge (swing) loans

A short term loan to buy a new home before your old one sells

RESPA

A law that protects consumers by requiring clear disclosure or real estate transaction costs

Unimproved property

Property that does not have basic services like sewer, water, electricity, etc.

Home equity loan

When a lender extends credit to a homeowner based on the home’s equity

Home equity

The value of a home minus the home’s outstanding loans

Settlement services

Services that check for various aspects of a property that is being sold

Reverse mortgages

When an elderly person uses the equity in their home to get a monthly stipend from the lender

Buying points

When the borrower pays a higher upfront cost in exchange for a lower interest rate

Foreclosure

The process of a lender reclaiming property that the borrower has failed to make payments on and reselling it

Escrow

when the lender may collect part of your taxes and insurance each month and hold that money in an escrow account until those bills are due

ECOA

An act that prohibits lenders from discrimination due to a borrower’s age or sex, race, color, religion, or national origin during the loan process

Modification (to a loan)

When a lender agrees to modify the terms of an existing mortgage to lower payment

Mortgage broker

professionals that match borrowers to lenders