Standard Mortgage Forms

What are standard mortgage forms

Part 7 of our Mortgage Basics series of articles discusses standard mortgage forms There are three basic standard mortgage forms you should be aware of: the mortgage application, loan estimate, and closing disclosure. Mortgage Application The standard mortgage application form is usually called a “Uniform Residential Mortgage Application“, or a “1003“. This is the form… [Read More]

Mortgage Basics – APR & Points

APR & Points - What's the difference?

Is there a difference between APR & Points? The short answer is, “Yes. An APR & Points on a mortgage are two very different things. (Part 5 of our Mortgage Basics series) Before we jump into discussing APR & Points, you should know when shopping for a mortgage an interest rate is not the same… [Read More]

Mortgage Basics – Pre-qualification and Pre-approval

  People use pre-qualification and pre-approval in mortgage discussions interchangeably, but the two terms mean different things. Understanding the difference between pre-qualification and pre-approval is important.   Both terms reference a homebuyer’s ability to obtain a mortgage for a certain amount. However, one does not determine if you can qualify, only that you may qualify…. [Read More]

Mortgage Basics – Types of Mortgage Loans

Mortgage Basics - Types of Mortgage Loans by Horizon Home Mortgage

Lenders – banks and financial institutions – have their own individual mortgage products or types of mortgage loans. However, these loan products typically fall into these categories.    What is a loan product? The very basic definition of “loan product” is simply “a type of loan account”. For example a 15-year, fixed rate mortgage is… [Read More]

Mortgage Basics – Escrow

Part 2 of our Mortgage Basics series. Escrow is part of the mortgage process in a real estate transaction. Understanding escrow is important in understanding mortgage basics. If you haven’t yet, please read Part 1, “Mortgage Basics” What is Escrow? An escrow is an account. Essentially, it is a “holding account”. An escrow account can… [Read More]