Closing Disclosure A Closing Disclosure (CD) is a required five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage. Conventional loans A mortgage that is not insured or guaranteed by a Federal government agency, i.e., the Federal Housing Administration, U.S. Department of Housing and Urban Development, the U.S. Department of Veterans Affairs, the U.S. Department of Agriculture, and the Bureau of Indian Affairs. Conventional loans include both loans that conform to government sponsored enterprise (Fannie, Freddie) guidelines and those that do not conform such as Non-Qualified (Non- QM) products. Conventional mortgages delivered to the Fannie/ Freddie below a certain loan amount threshold are also known as conforming mortgages. Co-borrower or Co-signer A co-borrower or co-signer is someone who agrees to take full responsibility to pay back a mortgage loan with you. This person is obligated to pay any missed payments and even the full amount of the loan if you don’t pay. Some mortgage programs distinguish a co-signer as someone who is not on the title and does not have any ownership interest in the mortgaged home. Having a co-signer or co-borrower on your mortgage loan gives your lender additional assurance that the loan will be repaid. But your co-signer or co-borrower’s credit record and finances are at risk if you don’t repay the loan. Credit Score A credit score predicts how likely you are to pay back a loan on time. Companies use a mathematical formula—called a scoring model—to create your FICO credit score from the information
64
Powered by FlippingBook