Index
A measurement used by lenders to determine changes to the Interest rate charged on an adjustable rate mortgage.

PITI Principal Interest Taxes and Insurance
The four elements of a monthly mortgage payment payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance homeowners and mortgage if applicable goes into an escrow account to cover the fees when they are due.

Mortgage
A lien on the property that secures the Promise to repay a loan.

Building code
Based on agreed upon safety standards within a specific area a building code is a regulation that determines the design construction and materials used in building.

Housing counseling agency
Provides counseling and assistance to individuals on a variety of issues including loan default fair housing and homebuying.

Application
The first step in the official loan approval process this form is used to record important information about the potential borrower necessary to the underwriting process.

Margin
An amount the lender adds to an index to determine the interest rate on an adjustable rate mortgage.

Lease purchase
Assists low- to moderate-income homebuyers in purchasing a home by allowing them to lease a home with an option to buy the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.

Fannie Mae Federal National Mortgage Association
A federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors by purchasing mortgages Fannie Mae supplies funds that lenders may loan to potential homebuyers.

Pre-qualify
A lender informally determines the maximum amount an individual is eligible to borrow.