PITI is an acronym that stands for principal, interest, taxes and insurance. Many lenders will estimate PITI as they are deciding whether a borrower qualifies for a mortgage. PITI stands for principal, interest, taxes,
A planned unit development (PUD) is a housing community made up of single family residences, townhomes, and condominiums — as well as commercial units. PUDs offer many common areas owned by the HOA and
Both pre-qualification and pre-approval provide borrowers with an estimation of how much home they can afford. However, a mortgage pre-approval is a more official step that requires the lender to verify the borrower’s specific
Pre-qualification is an early step in the home buying journey. When you pre-qualify for a home loan, you’re getting an estimate of what you might be able to borrow, based on the information you
A price drop counts as any reduction in the asking amount listed for sale on a property. This value counts how many listings dropped their price during a given time period.
The prime interest rate is typically awarded to a U.S. bank’s best customers. It’s the best-available loan rate and is usually three points above the federal funds rate: the rate banks charge each other
A loan’s actual balance, excluding the interest owed for borrowing. This is the original amount borrowed from the lender that needs to be repaid, in addition to all the other costs of borrowing that
Proof of funds, or POF, is a document that demonstrates how much money a person has available. When purchasing a home, you may need a POF to show the seller that you can cover
A purchase agreement demonstrates a buyer’s intent to purchase a piece of property and a seller’s intent to sell that property. The document outlines the terms and conditions of a sale and holds each
A purchase-money mortgage, also known as owner or seller financing, is issued to the buyer by the seller of a home during the purchase transaction. It is done to bypass a typical mortgage broker
A quitclaim deed is a document transferring ownership of property from one party to another. It transfers the title of the property, but only transfers what the seller actually owns. If two people own
