process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower's credit history and a judgment of the property value.

a document signed by the borrower's employer verifying his/her position and salary.

after a mortgage loan closes, the loan servicer collects the payments, manages escrow accounts, pays escrow taxes and insurance, and manages delinquent payments.

insurance protecting the lender against any claims arising from arguments about ownership of the property; also available for homebuyers. An insurance policy guaranteeing the accuracy of a title search protecting against errors. Most lenders require the buyer to purchase title insurance protecting the lender against loss in the event of a title def [..]

the amount of interest charged on a monthly loan payment, expressed as a percentage.

law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships.

used to create an escrow account or to adjust the seller's existing escrow account. They can include taxes, hazard insurance, private mortgage insurance and special assessments.

provision in some loans that charge a fee to a borrower who pays off a loan before it is due.

dollar amount paid to a lender for making a loan. A point is one percent of the loan amount. Also called discount points.

the charge for originating a loan; is usually calculated in the form of points and paid at closing. One point equals one percent of the loan amount. On a conventional loan, the loan origination fee is the number of points a borrower pays.