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| • | De Minimus Self-employed Borrower - Borrower who earns less than 5 percent of total stable monthly income from self-employed business income. |
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| • | Debit Card (EFT Card) - A plastic card, looks similar to a credit card, that consumers may use to make purchases, withdrawals, or other types of electronic fund transfers. |
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| • | Deed - A formal written instrument by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the purchaser at closing day. There are two parties to a deed: the grantor and the grantee. (See also deed of trust. |
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| • | Deed of Trust - In many states, this document is used in place of a mortgage to secure the payment of a note. |
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| • | Deed-in-lieu - A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure. Also called a "voluntary conveyance." |
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| • | Default - Failure to repay a loan or otherwise meet the terms of your credit agreement. |
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| • | Deferred Interest - Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of deffering your interest is that the buyer ends up owing more than the original amount of the loan. Also called Negative Amortization. |
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| • | Deficiency Judgment - A court order to pay the balance owed on a loan if the proceeds from the sale of the security are insufficient to pay off the loan. Deficiency judgments are not allowed in all states. |
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| • | Delinquency - Failure to make payments on time. This can lead to foreclosure. |
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| • | Department of Veterans Affairs (VA) - An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans. |
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| • | Department of Veterans Affairs (VA) - An independent agency of the federal government which guarantees long-term, low- or no-down payment mortgages to eligible veterans. |
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| • | Deposit - A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. |
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| • | Depreciation - Decline in value of a house due to wear and tear, adverse changes in the neighborhood, or any other reason. |
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| • | Disclosures - Information that must be given to consumers about their financial dealings. |
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| • | Discount Points - Additional points you can pay a lender to lower the interest rate on your loan at closing. Each point is equal to 1 percent of the loan amount (e.g. two points on a $100,000 mortgage would cost $2,000). Also referred to as Points. |
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| • | Documentary Stamps - A State tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The amount of stamps required varies with each State. |
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| • | Documentation - A list of documents you will be required to provide when submitting a loan application. The required documents range from w2's to a signed sales contract. |
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| • | Documentation Class - Category determined by Loan Prospector to indicate the minimum level of documentation you must obtain to underwrite the loan. The three possible classes are: Accept Plus, Accept and Caution. |
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| • | Dower - The rights of a widow in the property of her husband at his death. |
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| • | Down Payment - The difference between the loan amount and the purchase price, usually paid immediately upon purchase with cash or a trade-in |
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| • | Down Payment and Fees - Money paid to make up the difference between the purchase price and mortgage amount plus the closing cost fees to close the loan. |
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| • | Due-On-Sale Clause - A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home. |
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| • | Due-on-transfer Provision - This terminology is usually used for second mortgages. |
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