Appraisal
An estimate of the value of the property, made by a qualified professional called an "appraiser".

Credit Report
A report documenting the credit history and current status of a borrower'scredit standing.

Escrow Accounts
Mortgage escrow accounts are special accounts set up in which money is held to pay property taxes, fire and hazard insurance premiums, mortgage insurance premiums, and other escrow items.

Adjustable Rate Mortgage (ARM)
Is a mortgage in which the interest rate is adjusted periodically based on a preselected index. Also, sometimes known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

FHA Loan
A loan insured by the Federal Housing Administration open all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderately-priced homes almost anywhere in the country.

Loan to Value Ratio
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.