Don't make any adverse changes to your financial
"picture" during this time between approval and closing.
Innocent mistakes range from applying for a new department store
credit card, to purchasing a refrigerator for the new house, to
buying a new car, to quitting a job to go full-time into a new
business.
When you supply us information to help verify your income,
employment, assets and credit history, we will obtain a credit
report directly from the credit bureau.
Glossary
R
Radon: a radioactive gas found in some homes that,
if occurring in strong enough concentrations, can cause health
problems.
Realtor: real estate broker or an associate holding active membership
in a local real estate board affiliated with the National Association
of Realtors.
Real estate agent: an individual who is licensed to negotiate and
arrange real estate sales; works for a real estate broker.
RESPA: Real Estate Settlement Procedures Act; a federal law protecting
consumers from abuses during the residential real estate purchase and
loan process by requiring lenders to disclose all settlement costs,
practices, and relationships. It allows consumers to review
information on known or estimated settlement costs once after
application and once prior to or at settlement.
The law requires lenders to furnish information after application
only.
Recision: cancellation of a contract. With respect to mortgage
refinancing, the law that gives the homeowner three days to cancel a
contract in some cases once it is signed if the transaction uses
equity in the home as security.
Recording Fees: paid to the lender for recording a home sale with the
local authorities, thereby making it part of the public records.
Refinancing: paying off one loan by obtaining another; refinancing is
generally done to secure better loan terms (like a lower interest
rate).
Rehabilitation mortgage: a mortgage that covers the costs of
rehabilitating (repairing or Improving) a property; some
rehabilitation mortgages - like the FHA's 203(k) - allow a borrower to
roll the costs of rehabilitation and home purchase into one mortgage
loan.
Renegotiable Rate Mortgage (RRM): loan in which the interest rate is
adjusted periodically. See Adjustable Rate Mortgage.
Real Estate Settlement Procedures Act: is a federal law that Reverse
Annuity Mortgage (RAM): form of mortgage in which the lender makes
periodic payments to the borrower using the borrower's equity in the
home as security.
Equal
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