Primary Residence
The home a borrower occupies as their main residence. FHA, VA, and USDA loans are for primary residences only.
A mortgage with an interest rate that changes periodically based on a market index. Common structures include 5/1, 7/1, and 10/1 ARMs — fixed for the first 5, 7, or 10 years, then adjustable annually.
The gradual repayment of a mortgage through scheduled monthly payments covering both principal and interest. Early payments are mostly interest; later payments are mostly principal.
The total yearly cost of a loan, including interest plus certain lender fees, expressed as a percentage. Required disclosure under the Truth in Lending Act.
An independent valuation of a property by a licensed appraiser, used by the lender to determine how much it will lend against the property.
The difference between a home’s contracted price and its appraised value. Buyers may need to cover this gap out of pocket to close.
The use of systems such as Fannie Mae’s Desktop Underwriter (DU) or Freddie Mac’s Loan Product Advisor (LPA) to assess loan eligibility based on data inputs.
A large lump-sum payment due at the end of a loan term. Uncommon in standard residential mortgages; sometimes seen in certain commercial or portfolio products.
An arrangement in which the borrower, seller, or builder pays upfront points to reduce the interest rate for a period of time or for the life of the loan.
A refinance where the new loan amount exceeds the existing loan balance; the difference is paid to the borrower as cash.
A VA-issued document verifying a service member’s eligibility for a VA-guaranteed home loan.
The final step of a home purchase or refinance, when ownership and loan documents are signed and funds are disbursed.
Fees paid at closing for services such as origination, appraisal, title insurance, recording, and prepaid escrow. Typically 2–5% of the purchase price in Kansas.
A federally mandated five-page document issued at least three business days before closing, showing final loan terms and closing costs.
A mortgage meeting Fannie Mae / Freddie Mac size and underwriting guidelines. 2026 Kansas baseline limit: $806,500 one-unit.
A mortgage not insured by a government agency (FHA, VA, USDA). Includes both conforming and non-conforming loans.
A numerical assessment of creditworthiness, typically on a 300-850 FICO scale. Minimums vary by program: FHA 580, conventional 620, VA typically 580.
Monthly debt payments as a percentage of gross monthly income. A primary underwriting factor.
The legal document that transfers ownership of real estate. In Kansas, warranty deeds are most common.
Prepaid interest at closing in exchange for a lower rate. One point = 1% of the loan amount.
The cash a buyer pays toward the home at closing. Program minimums range from 0% (VA, USDA) to 3% (Conventional 97) to 3.5% (FHA) to 20% (conventional no-PMI).
Programs that provide funds to help cover a down payment. In Kansas, the Kansas Housing Resources Corporation (KHRC) administers state DPA programs.
A good-faith deposit a buyer puts down when making an offer. Typically 1-2% in Kansas.
A federally required designation indicating a lender does not discriminate on the basis of race, color, religion, sex, handicap, familial status, or national origin.
The portion of a home’s value owned by the homeowner — the difference between market value and mortgage balance.
A separate account held by the lender to pay property taxes and insurance from the borrower’s monthly payment.
A mortgage insured by the Federal Housing Administration, offering 3.5% down with 580+ credit. Requires upfront and annual MIP.
A government-sponsored enterprise (FNMA) that purchases conforming loans from lenders, enabling the secondary mortgage market.
A mortgage with an interest rate that does not change for the life of the loan. Standard terms are 15, 20, and 30 years.
Coverage required on properties in FEMA-designated flood zones. Kansas properties in Reno County’s Arkansas River plain, Cow Creek, and parts of Wichita’s Arkansas River are common examples.
A temporary pause or reduction in mortgage payments granted by the lender, typically due to hardship.
The legal process by which a lender repossesses a property when a borrower defaults. FHA requires a 3-year wait after foreclosure before re-qualifying.
A government-sponsored enterprise (FHLMC) that purchases conforming loans, parallel to Fannie Mae.
Money from a family member or other approved source used toward a down payment. Requires a gift letter and documentation of the source.
The Government National Mortgage Association (GNMA), which guarantees securities backed by FHA, VA, and USDA loans.
The predecessor to the Loan Estimate; replaced in 2015 by the LE under TRID rules.
An organization that manages a development or subdivision, typically collecting monthly or annual fees for shared maintenance.
A buyer-paid professional inspection of the property’s condition. Not required by the lender but strongly recommended.
A Freddie Mac low-down-payment program for first-time buyers at or below 80% of area median income, allowing 3% down.
A Fannie Mae low-down-payment program for first-time buyers at or below 80% of area median income, allowing 3% down.
A policy that protects the home against loss. Required by lenders. Kansas wind/hail exposure makes insurance costs volatile.
Another term for escrow account.
The cost of borrowing, expressed as an annual percentage of the loan balance. Distinct from APR.
A mortgage above the conforming loan limit. In most Kansas counties in 2026, loans above $806,500 are jumbo.
The state housing finance agency for Kansas; administers first-time buyer and down-payment assistance programs.
A federally mandated three-page document provided within three business days of a mortgage application, detailing estimated terms and costs.
A licensed individual who takes a mortgage application. Must hold a valid NMLS identifier.
The loan amount divided by the appraised value, as a percentage. Drives down payment, PMI/MIP, and pricing.
An intermediary who arranges mortgages between borrowers and lenders. Distinct from a direct lender.
The federal registry for mortgage loan originators and companies. Radley Brooks’ NMLS is 263374.
A fee the lender charges for processing the loan. Typically 0.5–1% of the loan amount.
Principal, Interest, Taxes, and Insurance — the four components of a total monthly mortgage payment. Often expanded to include PMI/MIP and HOA.
A documented underwriting review resulting in a formal letter stating a qualified loan amount. Stronger than a pre-qualification.
A rate and price estimate based on stated (unverified) information. Carries less weight with Kansas listing agents than a pre-approval.
The home a borrower occupies as their main residence. FHA, VA, and USDA loans are for primary residences only.
The amount of the loan itself, separate from interest or other costs.
See PMI.
Insurance required on conventional loans with less than 20% down. Cancellable at 20% equity; auto-cancels at 78% LTV by federal law.
A legally binding contract between buyer and seller outlining the terms of a home purchase.
A federal law regulating the closing process and prohibiting kickbacks in real estate transactions.
A lender’s commitment to hold a specific interest rate for a set period (typically 30, 45, or 60 days) while the loan is processed.
A licensed professional who represents buyers or sellers in real estate transactions.
Replacing an existing mortgage with a new loan — typically to reduce the rate, change the term, or access equity (cash-out).
The federal regulation implementing the Truth in Lending Act, governing mortgage disclosure, APR calculation, and advertising.
Liquid assets required to remain in a borrower’s account after closing, expressed in months of housing payments.
Money the seller agrees to pay toward the buyer’s closing costs. Program limits apply: FHA 6%, VA 4%, conventional 3-9% depending on LTV.
A simplified refinance process (FHA Streamline, VA IRRRL) with reduced documentation and often no appraisal.
Federal rules that combined TILA and RESPA disclosure requirements into the Loan Estimate and Closing Disclosure, effective October 2015.
Insurance protecting against losses from defects in the title to real property. Both lender’s and owner’s policies are typically purchased at closing.
Federal legislation requiring mortgage lenders to disclose loan terms including APR, finance charges, and key terms.
A mortgage guaranteed by the U.S. Department of Agriculture for eligible rural properties and income-qualified buyers. 0% down available.
The lender’s process of evaluating a borrower’s credit, capacity, collateral, and character to determine loan approval.
A fee required on most VA loans, typically 2.15% for first use and 3.3% for subsequent use. Financeable into the loan. Certain disabled veterans are exempt.
A mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible service members, veterans, and qualifying spouses. 0% down, no monthly PMI.
A deed in which the seller guarantees clear title to the property. Standard in most Kansas home sales.
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