P & Q
Plat It is a property map showing the boundaries for a piece of land.
Points They are a equal to 1% of the loan amount and are a lender payment for issuing a mortgage.
Power of Attorney When one person (usually the buyer or seller) appoints someone else to act on their behalf. They are often used when one or both parties are not able to make the closing themselves.
Pre-Approved A detailed conditional commitment of how much a bank will loan you. They are used to determine your home purchase loan limit and provide an understanding to sellers you will be able to secure a mortgage.
Pre-Qualified A quick process where buyers submit a loan application and receive a non-binding lender assessment of how much they will loan you.
Prepayment Penalty Not common now, but a lender may impose a fee on a homeowner who pay off a mortgage early. The longer you have the loan, the more money in interest the lender makes, hence the penalty for attempting to pay off the debt early.
Primary Residence Generally, a primary residence is the one a homeowner occupies in the majority of the time each year.
Principal lThe buyers and sellers in a real estate deal. It is also referred to as the funds used to pay down a loan balance.
Principal, Interest, Taxes, and Insurance (PITI) PITI consists of the amount borrowed (principal), interest, taxes (property), and insurance (homeowners) that makes up your mortgage payment. The principal pays down your loan and the interest goes to the lender for providing the loan in the first place.
Private Mortgage Insurance (PMI) Generally, any down payment less than 20% will require the buyer to take out PMI. This insurance covers the lender if the buyer cannot pay back the loan or if the foreclosure sale price is less than the amount owed. Once 20% of the loan has been paid, a homeowner can apply to have PMI removed from the loan.
Processing The second step in the mortgage application process. It includes verification of loan application information.
Property Tax The tax is calculated as a percentage of a home’s assessed value and is issued by a local tax assessor.
Qualifying Ratios A calculation used to determine if a borrower can qualify for a mortgage.