Mortgage Glossary
T
Title 1: an
FHA-insured loan that allows a borrower to make non-luxury improvements
(like renovations or repairs) to their home; Title I loans less
than $7,500 don't require a property lien. For more information,
see our guide explaining how
home improvement loans work.
Title insurance:
insurance that protects the lender against any claims that arise
from arguments about ownership of the property; also available
for homebuyers. For more information, see our discussion of title
insurance in our guide explaining mortgage settlement closing costs
and fees.
Title search:
a check of public records to be sure that the seller is the recognized
owner of the real estate and that there are no unsettled liens
or other claims against the property. For more information, see
our discussion of title
search in our guide explaining mortgage settlement
closing costs and fees.
Truth-in-Lending: a federal law obligating a lender to give full
written disclosure of all fees, terms, and conditions associated
with the loan initial period and then adjusts to another rate that
lasts for the term of the loan.
Underwriting: the 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.
V
VA: Department of Veterans Affairs: a federal agency which guarantees
loans made to veterans; similar to mortgage insurance, a loan guarantee
protects lenders against loss that may result from a borrower default.
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not legal advice and should not be interpreted as legal advice.
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information in summary form. This information may not be comprehensive,
is subject to change, and may not apply to all individual circumstances.
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