1. Drywall- Material used to complete the inside walls of a house.
  2. Environmental Engineer - Consultant on environmental impact issues, including water supply engineering, air pollution control, and wastewater treatment.
  3. Equity - The ownership interest; i.e., portion of a property's value over and above the liens against it.
  4. Escrow - An item of value, money or documents, deposited with a third party, to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate. In some parts of the country, escrows of taxes and insurance premiums are called impounds or reserves.
  5. Fixed-Rate Mortgage - A mortgage in which the interest rate and payments remain the same for the life of the loan.
  6. FICO Score - A numerical rating developed and maintained by Fair Isaac and Company that indicates a borrower's creditworthiness based on a number of criteria.
  7. Float The Rate - This term is used when a mortgage applicant chooses not to secure a rate lock, but instead allows the note rate pricing to fluctuate until the applicant decides to lock in, usually no later than five days prior to closing.
  8. Foreclosure - A legal procedure in which property mortgaged as security for a loan is sold to pay the defaulting borrower's debt.
  9. Framing - Building the skeleton of the house by erecting the walls, floors, ceiling, and roof structures.
  10. General Contractor- Supervises the building process by managing the construction effort performed by the various contractors.
  11. Good Faith Estimate - A document which tells borrowers the approximate costs they will pay at or before settlement, based on common practice in the locality. Under requirements of the Real Estate Settlement Procedures Act (RESPA), the mortgage banker or mortgage broker, if any, must deliver or mail the GFE to the applicant.
  12. Government Loan - A mortgage insured by a government agency, such as FHA, VA, Farmers Home Administration or a state bond program. The loans are generally made by private lenders, such as Countrywide Home Loans, Wells Fargo Home Mortgage, etc.
  13. Loan Officer - The representative a home buyer initially consults about a mortgage loan. Sometimes called a loan officer, account executive, or sales representative.
  14. Home Warranty - a kind of insurance that covers the cost of repairs to specific items in the home for a specified period of time.
  15. Homeowners Insurance (also called Hazard Insurance) - A real estate insurance policy required of the buyer protecting the property against loss caused by fire, some natural causes, vandalism, etc. May also include added coverage such as personal liability and theft away from the home.
  16. House Inspection - A thorough evaluation and written report of a home's condition both inside and out. The inspection is valuable in locating any problems in a property and helps you determine the extent of renovation needed. You can use the report to have the seller make repairs or reduce the purchase price. Always use your own inspector, and do not rely solely on the seller's inspection reports.
  17. HUD-l Settlement Statement - A standard form used to disclose costs at closing.
  18. HVAC - Heating, ventilation, and air conditioning systems, including the furnace, heat pumps, ductwork and associated wiring.
  19. Index - A published interest rate, such as the prime rate, LIB OR, T-Bill rate, or the 11th District COFI. Lenders use indexes to establish interest rates charged on mortgages or to compare investment returns. On ARMs, a predetermined margin is added to the index to compute the interest rate adjustment.
  20. Interest Rate - The percentage of an amount of money which is paid for its use for a specified time.
  21. Interim Interest - The interest that accrues, on a per-diem basis, from the day of closing until the end of the month.
  22. Leverage - Using credit or borrowed money to increase the rate of return from an investment. For example, by purchasing a $100,000 home with 10% down, you are using just $10,000 to control the investment.