Mortgage terms to know
Adjustable Rate Mortgage (ARM)
APR stands for annual percentage rate and its purpose is to give borrowers a truer representation of the effective interest rate on their loan. APR factors in certain closing costs and fees and spreads these costs over the life of the loan to arrive at a more accurate annualized percentage rate than the note rate alone represents.
Equity
The difference based between what is owed against a property and its fair market value.
FICO Score
The best-known and most widely used credit score model in the United States. The FICO score is calculated with information from a consumer's credit files. It provides a snapshot of risk that banks and other institutions used to help make lending decisions.
Loan to Value (LTV)
The percentage of a home’s value covered by your mortgage. For example, an $160,000 loan on a $200,000 home equals an 80% LTV. Lenders use this to assess risk—higher LTVs can mean higher risk.
The process of buying a home
Getting started
The best place to start is by familiarizing yourself with mortgage terminology. Understanding key terms will help you make informed decisions when choosing the right mortgage for you. Additionally, review current rates, check your credit score, and begin searching for a realtor. A strong credit score can help you secure the best rate.
Pre-qualification
Know your budget before you shop. With a quick and free prequalification process, we’ll help you determine a loan amount and monthly payment that fits your needs. When you find your perfect home, you can use your USALLIANCE pre-qualified mortgage to negotiate and buy with confidence.
Loan application
Start your application anytime, online. It’s free and comes with no obligation. We’ll just need some basic information about you and the property you're looking to purchase or refinance. You can update any details as needed while working with your loan officer to finalize your application.
Processing
During the processing stage, we collect, order, and verify all necessary documentation, such as income proof, credit reports, and property details. This ensures the application is complete and prepared for underwriting review.
Underwriting
Underwriting involves a comprehensive review and detailed risk assessment. The underwriter evaluates the applicant's financial stability, creditworthiness, and property appraisal for condition and valuation to determine whether the loan meets the institution's approval criteria.
Closing
Once your pre-closing conditions are approved, we’ll schedule a closing date that works for you. The closing agent will provide the necessary loan documents, along with a list of items to bring and your final closing figures. We’ll coordinate closely with the closing agent to ensure you receive all the information you need in plenty of time, so you’re fully prepared for the closing of your mortgage loan.
Helpful resources
Calculate what you can afford
Our helpful tools can figure out how much you can afford an a first home, or what your refinance value is.
View our calculators
All terms you need to know
We put together a list of terms that will help you navigate the homebuying process like a pro.
View all terms
Compare our rates
Our competitive rates give you confidence when buying your future home.
View all rates
Our Loan Officers are ready to help!
Mauricio Henriquez
Loan Officer, NMLS # 1234104
Multilingual - English & Spanish
.webp?width=250&height=212&name=COOP-USALLIANCE-red%20(1).webp)
