Mortgage terms, explained without the jargon.

A written history of a property's ownership, transfers, and any legal claims against it.

A loan provision that lets the lender demand the full balance immediately if you default.

A mortgage with an interest rate that can change on a set schedule after an initial fixed period.

How often an ARM's interest rate can change after its initial fixed period.

The purchase price and monthly payment a borrower can reasonably manage given income, debts, and program limits.

The gradual repayment of a loan through scheduled payments that cover both interest and principal.

A table showing every scheduled payment on a loan, broken into principal, interest, and remaining balance.

The total yearly cost of a loan as a percentage, including the interest rate and certain loan fees.

An independent, licensed opinion of a property's market value used by the lender.

A contract clause that lets a buyer back out or renegotiate if the appraisal comes in below the contract price.

An appraisal gap is the difference between a home's contract price and its lower appraised value, which a lender typically won't finance.

An Appraisal Management Company is a third-party firm that lenders use to order and oversee independent property appraisals.

An increase in a property's value over time.

The maximum amount an adjustable-rate mortgage's interest rate can change at each adjustment and over the life of the loan.

The value assigned to a property by a local government for property-tax purposes.

An asset is anything of monetary value a borrower owns, such as bank funds, investments, or property, that a lender may consider during underwriting.

A qualifying method that treats a portion of your liquid assets as income for loan approval.

A loan program that qualifies borrowers on assets alone, without requiring income documentation.

Everything you own that has monetary value — cash, investments, retirement accounts, real estate, and vehicles.

A loan a qualified buyer can take over from the seller, keeping the original rate and terms.

Software that evaluates a mortgage application against program guidelines and returns a preliminary decision.

Available credit is the unused portion of a credit line, calculated by subtracting the current balance from the total credit limit.

A loan with small early payments and a single large lump-sum payment due at the end.

A mortgage that qualifies self-employed borrowers based on business or personal bank deposits instead of tax returns.

One one-hundredth of a percent — 0.01% — used to describe changes in interest rates and yields.

A beneficiary is the lender or note holder who receives repayment under a deed of trust, or a person designated to receive property or proceeds.

Paying half your monthly mortgage every two weeks, which produces 13 full payments per year instead of 12.

A borrower is the individual or entity who takes out a loan and is legally responsible for repaying it under the note's terms.

A short-term loan that provides funds to buy a new home before your current one sells.

A mortgage broker is a licensed professional who connects borrowers with lenders and helps compare loan options across multiple sources.

Builder approval is a lender's review and acceptance of a homebuilder's qualifications before financing new construction.

Property insurance that protects a home under construction from damage during the build.

Paying upfront to reduce the interest rate for the first few years — or the entire life — of a loan.

A licensed real estate agent who represents the buyer's interests in a home purchase.

A property valuation metric equal to net operating income divided by property value, shown as a percentage.

The net income a rental property generates after operating expenses and debt service.

Cash to close is the total amount of funds a borrower must bring to closing after accounting for the loan, deposits, and credits.

Annual pre-tax cash flow divided by the total cash invested, expressed as a percentage.

Refinancing your mortgage for more than you owe and receiving the difference as cash.

A document from the VA that confirms a veteran or service member is eligible for a VA home loan.

A local-government document certifying a building is safe to occupy and complies with code.

The historical sequence of ownership transfers for a specific property.

A charge-off is a creditor's accounting decision to write off a seriously delinquent debt as unlikely to be collected.

The point at which underwriting has approved the loan and closing can be scheduled.

The legal transfer of a home from seller to buyer, when documents are signed and funds are disbursed.

Fees and charges — typically 2–5% of the loan amount — paid at closing to complete a mortgage transaction.

The closing date is the day ownership legally transfers and loan documents are signed, finalizing the purchase or refinance.

A federally required five-page form detailing the final terms and costs of your mortgage.

A co-borrower is a person who applies for a mortgage jointly with another borrower and shares equal legal responsibility for repayment.

A co-signer agrees to be legally responsible for a mortgage debt without necessarily holding ownership in the property.

The property pledged to secure a mortgage and available for the lender to foreclose on if the loan defaults.

A collection account is a debt that has been transferred or sold to a third-party agency after the original creditor stopped pursuing it directly.

Debts that have been sent to a third-party collector after prolonged non-payment.

Combined Loan-to-Value is the percentage of a home's value represented by all liens against it, including a first mortgage and any additional loans.

Commission income is earnings based on sales performance rather than a fixed salary, which lenders typically average over a history of tax returns.

Recently sold homes similar to a subject property, used to estimate market value.

A compensating factor is a positive element in a borrower's profile that can help offset a weaker area elsewhere in the loan file.

Positive elements of a file that can offset weaknesses during underwriting.

A conventional loan that meets Fannie Mae and Freddie Mac size and eligibility rules.

A scheduled release of construction-loan funds paid as the build reaches defined milestones.

A short-term loan that finances the build of a new home and is drawn on as work progresses.

A single loan that funds construction and then converts to a permanent mortgage without a second closing.

A condition in a purchase agreement that must be met for the contract to remain binding.

Funds set aside in a construction budget to cover unexpected cost overruns.

A mortgage that isn't backed by a government agency and typically follows Fannie Mae or Freddie Mac guidelines.

An adjustable-rate mortgage that includes a one-time option to convert to a fixed rate.

A credit inquiry is a record of a lender or company checking a borrower's credit report, which may or may not affect a credit score.

A credit limit is the maximum balance a lender allows on a revolving account, such as a credit card or line of credit.

A detailed record of your borrowing history maintained by the major credit bureaus.

A three-digit number summarizing your credit risk based on payment history, balances, and other factors.

The percentage of your available revolving credit that you're currently using.

Debt service is the total amount of principal and interest payments required to keep a loan current over a given period.

A commercial and investment-property metric equal to NOI divided by loan amount, expressed as a percentage.

The ratio of a property's net operating income to its total debt payments.

The percentage of your gross monthly income used to pay monthly debt obligations.

The legal document that transfers ownership of real estate from one party to another.

A security instrument used in many states to secure a mortgage, involving a trustee in addition to lender and borrower.

A deed-in-lieu of foreclosure is a voluntary transfer of property ownership to the lender to satisfy a defaulted loan and avoid formal foreclosure.

Failing to meet the terms of the loan — most often by missing payments.

Deferred interest is interest that accrues on a loan but is added to the balance rather than being paid currently, increasing the amount owed over time.

A payment that is past its due date but has not yet resulted in default.

A decline in a property's value, or an accounting deduction that spreads a building's cost over its useful life.

Optional upfront fees paid to the lender to lower your interest rate — one point equals 1% of the loan amount.

The portion of a home's purchase price you pay in cash upfront, with the rest financed.

Grants or second-lien loans from state or local programs that help buyers cover down payment and closing costs.

The draw period is the phase of a HELOC during which a borrower can withdraw funds, typically making interest-only or minimum payments.

A due-on-sale clause lets a lender demand full repayment of a loan if the property is sold or transferred without the lender's consent.

A deposit the buyer places when making an offer, showing good-faith commitment to the transaction.

A legal right that lets someone use part of your property for a specific purpose.

A rental property's potential rental income minus vacancy and collection losses.

Any claim, lien, or restriction attached to a property that affects its title.

Equal Housing Opportunity refers to the principle and related laws that prohibit discrimination in housing and lending based on protected characteristics.

The portion of a property you truly own — the value minus what you still owe.

A neutral third-party arrangement that holds funds or documents until specific conditions are met.

A lender-held account that collects a portion of your monthly payment to pay property taxes and insurance when due.

A yearly review your servicer performs to reconcile the escrow account against actual bills.

An escrow shortage occurs when a loan's escrow account has less money than needed to cover upcoming property tax and insurance bills.

Estimated closing costs are the projected lender, title, and third-party fees a borrower expects to pay to finalize a mortgage transaction.

Estimated property value is a preliminary, non-appraisal figure used early in the loan process to gauge a home's likely worth.

A borrower's plan for paying off a short-term or interest-only loan when it comes due.

Expense factor is the estimated percentage of a rental property's gross income that goes toward operating costs like taxes, insurance, and maintenance.

Fair market value is the price a property would likely sell for between a willing buyer and seller, neither under pressure, with reasonable knowledge of the property.

A government-sponsored enterprise that buys conforming mortgages from lenders to keep housing capital flowing.

The federal funds rate is the short-term interest rate the Federal Reserve targets for overnight lending between banks, which indirectly influences broader borrowing costs.

The U.S. central bank, which sets short-term policy rates that indirectly influence mortgage rates.

A mortgage insured by the Federal Housing Administration, designed to expand access for buyers with modest credit or down payments.

The most widely used credit score in U.S. mortgage lending, ranging from 300 to 850.

The finance charge is the total dollar amount a loan is estimated to cost in interest and certain fees over its full term.

The primary loan secured by a property, in first-lien position ahead of any other financing.

A first-time homebuyer is generally someone who has not owned a primary residence within a defined recent period, a status that can unlock certain programs and assistance.

A mortgage whose interest rate stays the same for the entire loan term.

Choosing not to lock your interest rate and letting it move with the market until a later decision.

A policy that covers damage from flooding, which standard homeowners insurance doesn't cover.

A flood zone is a geographic area designated by FEMA based on its estimated risk of flooding, which can determine whether flood insurance is required.

A temporary pause or reduction in mortgage payments granted by the servicer during hardship.

The legal process by which a lender takes ownership of a property after prolonged mortgage default.

A government-sponsored enterprise that buys conforming mortgages from lenders, alongside Fannie Mae.

The percentage of gross monthly income that goes to housing payments (PITI) only.

A loan whose scheduled payments will pay off the entire balance by the end of the term.

A funding fee is an upfront charge on certain government-backed loans, most commonly VA loans, that helps sustain the program instead of requiring ongoing mortgage insurance.

Money given by an eligible donor to help a buyer cover down payment or closing costs.

A gift letter is a signed statement confirming that money given toward a home purchase is a genuine gift, not a loan that must be repaid.

A federal agency that guarantees mortgage-backed securities backed by government-insured loans.

A good faith deposit is money a buyer puts down to show serious intent to purchase, often used interchangeably with earnest money.

A mortgage insured or guaranteed by a federal agency — FHA, VA, or USDA.

A government-sponsored enterprise is a congressionally chartered company, such as Fannie Mae or Freddie Mac, that buys mortgages from lenders to keep money flowing through the housing market.

Total pre-tax monthly income lenders use to calculate DTI and qualifying amounts.

Gross rent is the total rental income a property generates before subtracting any operating expenses, vacancy, or management costs.

A quick investment metric equal to purchase price divided by gross annual rent.

A guarantor is a person who agrees to repay a loan if the primary borrower fails to, typically without holding ownership title to the property.

Direct construction costs — materials, labor, and site work — used to build the physical structure.

The portion of homeowners insurance that covers physical damage to the structure from perils like fire and wind.

The market value of your home minus what you owe on it.

A revolving line of credit secured by your home, letting you draw and repay funds as needed.

A fixed-rate, lump-sum second mortgage secured by your home's equity.

A professional evaluation of a home's condition — structure, systems, and safety — usually done during the contract period.

An organization that governs and maintains common areas in a planned community or condo.

A policy that protects your home and personal property from covered perils and provides liability protection.

A state or local tax break that reduces the taxable value of your primary residence.

The housing expense ratio compares a borrower's total monthly housing payment to their gross monthly income, often called the front-end ratio.

Housing payment history is the record of how consistently a borrower has paid rent or a prior mortgage, which lenders may review during underwriting.

The share of gross monthly income used for housing expenses — same as front-end DTI.

A legacy closing statement used before 2015; largely replaced by the Closing Disclosure for consumer mortgages.

Another name for an escrow account, used mostly on the West Coast.

Income verification is the process lenders use to confirm a borrower's stated earnings through documents like pay stubs, tax returns, or bank statements.

A published benchmark rate used to calculate an adjustable-rate mortgage's new rate at each adjustment.

The length of time an ARM's introductory rate is fixed before the first adjustment.

The cost of borrowing money, expressed as a percentage of the outstanding balance.

The percentage a lender charges to borrow money, quoted on an annual basis.

A loan with a period during which payments cover only interest, not principal.

Real estate purchased primarily to generate income or appreciation, not for the owner to live in.

An investment property loan finances a home purchased to generate rental income or appreciation rather than to be used as a primary residence.

In mortgage terminology, an investor is the entity — often a GSE or private buyer — that purchases loans from lenders and ultimately holds or securitizes them.

An IRS transcript is an official summary of a filed tax return that lenders use to verify reported income directly with the IRS.

Joint credit is a loan or credit account held by two or more people who share equal responsibility for repayment.

A form of co-ownership with equal shares and a right of survivorship.

A court ruling that a debtor owes a specific amount, which can attach as a lien to real property.

A mortgage larger than the conforming loan limit set by the FHFA.

A junior lien is a loan secured against a property that ranks behind another loan, such as a first mortgage, in priority for repayment.

A late fee is a charge assessed when a mortgage payment isn't received within the grace period specified in the loan documents.

A mortgage payment made after its due date and grace period.

A leasehold is a form of property ownership where the buyer owns the structure but leases the underlying land for a set term.

The institution or entity that provides the mortgage funds and holds the note.

A lender credit is money a lender applies toward a borrower's closing costs, often in exchange for accepting a slightly higher interest rate.

A legal claim against a property used as security for a debt or obligation.

The maximum amount an ARM's interest rate can rise above its initial rate over the life of the loan.

A line of credit is a flexible borrowing arrangement that lets a borrower draw funds up to an approved limit and repay over time, rather than receiving a lump sum.

A liquid asset is cash or an asset that can be quickly converted to cash, such as checking, savings, or money market account balances.

The loan amount is the total sum a lender agrees to lend a borrower, typically the purchase price or appraised value minus the down payment.

A three-page federally required disclosure summarizing a mortgage offer's terms and costs.

A permanent change to a mortgage's terms — rate, term, or balance — negotiated to make payments sustainable.

A licensed mortgage professional who advises and processes your application.

Loan origination is the full process of creating a new mortgage, from application through underwriting to final funding at closing.

Loan Program refers to a specific set of underwriting rules, eligibility criteria, and terms — such as conventional, FHA, VA, or USDA — that a lender offers.

The company that collects mortgage payments and manages the loan after closing.

Loan Term is the length of time you agree to repay a mortgage, such as 15 or 30 years, which shapes your monthly payment and total interest.

The ratio of a construction loan to the total cost of the project, expressed as a percentage.

The loan amount expressed as a percentage of the appraised value or purchase price, whichever is lower.

A lock extension pushes back the expiration date of a rate lock, usually for a fee, when closing is delayed beyond the original lock period.

The length of time a rate lock is valid — typically 30, 45, or 60 days.

A rental property leased on annual or multi-year terms to tenants using it as a primary residence.

A manufactured home is a factory-built dwelling constructed to federal HUD code and transported to a site, with financing rules that differ from site-built homes.

The fixed spread added to an ARM's index to determine the fully indexed interest rate.

Market rent is the rental income a property could reasonably command in the current local rental market, often used to estimate cash flow for investment properties.

The most probable price a home would sell for in an open, competitive market.

The date on which a mortgage's final scheduled payment is due and the balance must be paid in full.

A mechanic's lien is a legal claim against a property filed by a contractor, subcontractor, or supplier who wasn't paid for work or materials.

Minimum Property Requirements are the safety, soundness, and habitability standards a property must meet for certain government-backed loan programs.

Monthly Housing Expense is the total recurring cost of owning a home each month, typically including principal, interest, taxes, insurance, and HOA dues.

A loan used to buy or refinance real estate, secured by the property itself.

A licensed intermediary who shops your loan across multiple wholesale lenders to find terms that fit.

Insurance that protects the lender if you default; often required when LTV is above 80%.

The mortgage insurance required on FHA loans, paid both upfront and monthly.

The written promise to repay a mortgage, containing loan terms and payment schedule.

A mortgage payment is the recurring amount due on a home loan, generally covering principal and interest plus, if escrowed, taxes and insurance.

Mortgage Readiness describes how prepared a borrower's overall financial picture — credit, income, savings, and debt — is for pursuing a home loan.

Mortgage servicing is the ongoing administration of a home loan after closing, including collecting payments, managing escrow, and handling customer requests.

Bonds backed by pools of mortgages, whose yields influence mortgage rates.

The lender in a mortgage transaction — the party lending the money.

The borrower in a mortgage transaction — the party pledging the property as security.

A residential property with multiple separate units — most commonly 2- to 4-unit buildings for residential financing.

When a loan's monthly payment doesn't cover the interest due, causing the balance to grow.

A property's income after operating expenses but before mortgage payments and taxes.

Net worth is the value of everything you own minus everything you owe, offering a snapshot of overall financial standing.

A loan that doesn't require the borrower to state or document income for the DTI calculation.

A loan that doesn't meet Fannie Mae or Freddie Mac guidelines — usually because of size, property type, or borrower profile.

A non-occupant co-borrower is someone on the mortgage loan and title who doesn't live in the financed property but helps the primary borrower qualify.

A mortgage that doesn't meet the strict CFPB definition of a Qualified Mortgage but is still fully underwritten.

A non-warrantable condominium is a condo project that doesn't meet standard investor eligibility guidelines, often requiring specialized financing.

The interest rate stated on the mortgage note, used to calculate monthly interest.

The Notice of Right to Cancel informs borrowers of a limited window to cancel certain refinance transactions on their primary residence.

The intended use of a property — primary residence, second home, or investment property.

A lender charge for processing and originating your loan, usually 0.5%–1% of the loan amount.

A property where the borrower lives as their primary residence for most of the year.

Ownership interest is the legal share or stake a person holds in a property, which can range from full sole ownership to a partial or shared claim.

A limit on how much an ARM's monthly payment can rise at each adjustment, regardless of the rate change.

A significant jump in monthly housing payment — often when an ARM adjusts or a low intro payment ends.

Interest charged from the day your loan funds until the end of that month, collected at closing.

A structure that pairs a first mortgage with a second lien to avoid PMI or jumbo pricing.

Principal, Interest, Taxes, and Insurance — the four components of a typical monthly housing payment.

A Planned Unit Development is a community of individually owned homes that share common areas and amenities managed through a homeowners association.

Percentage-based fees paid to the lender at closing — one point equals 1% of the loan amount.

A loan a lender keeps on its own balance sheet rather than selling to Fannie, Freddie, or Ginnie.

A conditional lender commitment based on a full credit and documentation review.

A fee charged for paying off a loan early, either fully or beyond a certain principal amount.

A quick, informal estimate of what you may be able to borrow, based on self-reported information.

Prepaid expenses are upfront costs collected at closing to fund items like homeowners insurance, property taxes, and prepaid interest.

Prepaid interest is the interest charged from the closing date through the end of that month, collected upfront at closing.

Prepayment means paying toward a mortgage balance beyond the scheduled payment, whether as extra principal or paying the loan off entirely early.

The interest rate banks charge their most creditworthy customers, often the base for HELOCs and other variable-rate consumer loans.

The unpaid balance of a loan — what you actually owe, separate from interest.

The portion of a mortgage payment that pays down principal and the cost of borrowing.

A short-term real estate loan funded by private individuals or funds rather than banks.

Mortgage insurance on conventional loans, typically required when LTV exceeds 80%.

Processing is the stage of the mortgage workflow where documentation is collected, organized, and prepared for underwriting review.

A promissory note is the legal document in which a borrower promises to repay a loan under specific terms, including rate, payment amount, and term.

Local government taxes assessed annually based on a property's assessed value.

Property type describes the classification of a home — such as single-family, condo, PUD, manufactured, or multifamily — which affects loan eligibility and terms.

The legally binding contract between buyer and seller detailing the terms of a real estate sale.

A category of mortgages that meet CFPB rules designed to make sure borrowers can repay.

Qualifying income is the portion of a borrower's earnings that a lender can count toward meeting debt-to-income requirements for loan approval.

Qualifying rate is the interest rate a lender uses to calculate a borrower's payment for underwriting purposes, which can differ from the actual note rate.

A deed that transfers whatever interest the grantor has in a property, with no warranties.

A lender's guarantee that your interest rate won't change for a set period before closing.

A refinance that changes rate, term, or both without pulling significant cash out.

A property that has become a lender's asset after failing to sell at a foreclosure auction.

A real estate agent who is a member of the National Association of Realtors and bound by its code of ethics.

Recording is the process of filing documents like the deed and mortgage with the local government office to create a public record of ownership and liens.

A government fee charged to record the deed and mortgage in public land records.

Replacing an existing mortgage with a new one — usually to change rate, term, structure, or pull cash.

The point at which the monthly savings from a refinance recoup its closing costs.

A loan that finances both the purchase (or refinance) of a home and the cost of eligible improvements.

Remaining entitlement is the portion of a veteran's VA loan guaranty benefit still available after using some entitlement on a previous VA loan.

Repayment period is the phase of a loan — often on a HELOC — during which you pay both principal and interest on a set schedule.

Liquid assets you have left after closing, measured in months of housing payments.

The net monthly income remaining after all debts, taxes, and typical living expenses — used by VA underwriting.

A loan for older homeowners that converts home equity into cash without monthly payments.

A three-day window during which a borrower can cancel certain refinances or home equity loans on a primary residence.

Seasoning refers to the amount of time an asset, account, or property has existed or been held before it can be used to qualify for a loan.

A loan secured by your home that sits in second-lien position behind the first mortgage.

The market where lenders sell existing mortgages to investors, freeing capital to make new loans.

Money contributed by the seller toward the buyer's closing costs, prepaid items, or rate buydown.

A seller credit is money the seller agrees to contribute toward the buyer's closing costs or prepaid items, negotiated as part of the purchase agreement.

A servicing transfer occurs when the company that collects your mortgage payments changes, even though your loan terms stay the same.

Another word for closing — the formal disbursement of funds and transfer of ownership.

A sale in which the lender agrees to accept less than the full mortgage payoff to avoid foreclosure.

A rental leased for short stays, typically fewer than 30 days per booking (e.g., Airbnb, Vrbo).

Interest calculated only on principal, not on accumulated interest.

Non-construction costs of a build — permits, design, engineering, legal, and financing.

Source of funds is the documented origin of money used for a down payment, closing costs, or reserves during mortgage underwriting.

A special assessment is a one-time or temporary fee charged by an HOA or condo association to cover unexpected or major expenses beyond regular dues.

A simplified refinance offered on FHA, VA, and USDA loans with reduced documentation.

Any lien on the property that sits behind the first mortgage in priority.

A drawing that shows a property's exact boundaries, structures, and easements.

The portion of an escrow account that holds funds specifically for property tax payments.

A tax lien is a legal claim placed against a property or a person's assets due to unpaid taxes, which can affect the ability to sell or refinance.

A temporary buydown lowers a borrower's monthly payment for an initial period by using upfront funds to subsidize the interest rate before it steps up to the note rate.

A form of co-ownership in which each owner holds a separate, transferable share with no automatic survivorship.

The length of time you have to repay a loan — commonly 15, 20, or 30 years for mortgages.

Legal ownership of a property, evidenced by a chain of recorded documents.

A title commitment is a document from a title company stating the conditions under which it will issue title insurance for a property.

A policy that protects against losses from defects in a property's title that existed before closing.

An examination of public records to trace ownership and identify liens or encumbrances on a property.

Total Interest Percentage is the total amount of interest a borrower will pay over the life of the loan, expressed as a percentage of the loan amount.

Treasury yield is the return investors earn on U.S. government bonds, which serves as a benchmark that can influence mortgage rate movements.

TILA-RESPA Integrated Disclosure — the rules that produce the Loan Estimate and Closing Disclosure.

A trust is a legal arrangement where a trustee holds and manages property or assets on behalf of beneficiaries according to specific terms.

A trustee is the person or entity that holds legal title to a property or manages assets on behalf of beneficiaries under a trust or deed of trust.

The federal law requiring standardized disclosure of consumer credit terms, including APR and total finance charge.

The person or system that evaluates a loan file and issues the approval decision.

The lender's process of evaluating whether a loan meets guidelines and can be approved.

An underwriting condition is a specific document or clarification an underwriter requires before issuing final loan approval.

The Uniform Residential Loan Application is the standardized form borrowers complete to apply for most residential mortgages.

A government-backed mortgage for eligible rural and suburban buyers, offering 0% down.

A VA appraisal is a property valuation required for VA-guaranteed loans that also checks the home against VA minimum property requirements.

VA entitlement is the amount the Department of Veterans Affairs guarantees on a VA loan, which helps determine how much a veteran can borrow without a down payment.

A one-time fee charged on most VA loans that funds the VA loan program.

A VA IRRRL is a streamlined refinance option for existing VA loan holders designed to lower the interest rate or move to a more stable loan type.

A mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible service members, veterans, and surviving spouses.

The percentage of time a rental property is unoccupied during the year.

Valuation is the process of estimating a property's market worth, commonly through an appraisal, automated model, or comparative market analysis.

An interest rate that can change over the life of a loan based on an index.

Verification of Assets is the process lenders use to confirm a borrower has the funds needed for a down payment, closing costs, and reserves.

A lender's confirmation of employment and income directly with the borrower's employer.

Verification of Mortgage is a document confirming a borrower's payment history on an existing mortgage, often used when credit report data is insufficient.

Verification of Rent is documentation confirming a borrower's on-time rental payment history, often used by first-time buyers without a mortgage history.

Vesting describes how title to a property is legally held, such as by an individual, joint tenants, tenants in common, or a trust.

A veteran, in the context of VA loans, is a service member or former service member who meets eligibility requirements for VA loan benefits, as confirmed by a Certificate of Eligibility.

W-2 income is earnings from an employer reported annually on IRS Form W-2, commonly used to document income for salaried and hourly employees.

A warrantable condominium is a condo project that meets specific eligibility guidelines set by mortgage investors, allowing broader access to conventional financing.

A deed in which the seller guarantees clear title and defends against past claims.

Wire fraud in real estate refers to scams where criminals impersonate a title company, lender, or agent to trick buyers into wiring closing funds to a fraudulent account.

A financing structure where the seller keeps the existing mortgage and holds a new, larger loan that 'wraps' around it.

The chart of interest rates on bonds of different maturities — a key indicator for mortgage pricing.

Historically, a payment from a wholesale lender to a broker for delivering a loan at a rate above par.

Local rules that govern how land can be used — residential, commercial, mixed-use, or otherwise.