Alternate Credit : Documentation such as paid utility bills, phone bills, rent payments, car insurance payments or other regular scheduled payments. If you do not have any traditional credit accounts you can demonstrate your willingness and ability to pay using obligations such as these.

Appraisal : A formal written estimation of the current market value of a home. Also refers to the process by which this estimate is obtained.

Buyer's Agent : A licensed Realtor who works exclusively for individuals interested in purchasing a property. Identifies available properties for buyers, shows them the homes that meet their criteria and helps them to negotiate the best purchase price and terms.

Cash Reserve : A requirement of some lenders that buyers have enough cash remaining after closing to make the first two monthly mortgage payments.

Closing/Settlement : The process that brings a loan into legal existence, including the signing of all loan documents, their delivery to the appropriate parties, and the disbursing of at least some of the loan funds. In real estate, the sale of the property is finalized by signing of the mortgage documents, and paying of closing costs. This includes the delivery of a deed, financial adjustments, the signing of notes and mortgages, and the disbursement of funds necessary to the sale of loan transaction.

Commission : An agent's fee for negotiating a real estate sale, generally a percentage of the sales price. Typically a 6% fee which is paid by the property seller. The fee may be split between the Seller's Realtor and the Buyer's Realtor.

Deed : The legal document that transfers the rights of ownership and possession (the title) of a property from the seller to the buyer.

Default : The failure to make a mortgage payment on a timely basis or to otherwise comply with other requirements of a mortgage.

Delinquency : A loan in which a payment is overdue but not yet in default

Earnest Money Deposit : A deposit made by a potential home buyer to show that he or she is serious about buying the house, generally made payable to a third party, not the seller and held in escrow until closing.

Escrow Payment : That portion of a borrower's monthly payment held by the lender to pay for taxes, hazard insurance, mortgage insurance, and other items until they become due.

Fair Credit Opportunity (ECOA) : A federal law that prohibits lenders from denying mortgages on the basis of a borrower's race. Act color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.

FHA Mortgage : A mortgage that is insured by the Federal Housing Administration. Also referred to as a "government" mortgage.

First Mortgage : A mortgage that has first claim in the event of default.

Gross Income : Your total on-going and verifiable income before any deductions are taken.

Hazard Insurance : A broad form of casualty insurance coverage for real estate that includes protection against loss from fire, certain natural causes, vandalism and malicious mischief.

Market Value : An estimate of the highest price a property would sell for within a reasonable period of time, on the open market, under normal conditions, and between a willing, ready and able buyer and seller.

Mortgage : A legal document which pledges a property to the lender as security for payment of a debt.

Mortgage Banker : A company that originates mortgages just for resale in the secondary market.

LRefinancing : The process of paying off one loan with the proceeds form a new loan using the same property as security or collateral.

Revolving Debt : Accounts where the balance owed and the monthly payment amount change from month to month. Credit cards are revolving debts.

Sales Contract/Agreement for Sale/Purchase Agreement : A document in which the purchaser agrees to buy certain real estate (or personal property) and the seller agrees to sell under stated terms and conditions.

Survey : A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions and the location and dimensions of any improvements.

Tax Lien : A lien on a property by a local, state of federal government for the amount of due and unpaid taxes.