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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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