At the end of the year, the plan operators typically take the extra money that results from the process and send lump sum payments to the participants' lenders. An early evaluation by a lender of a potential home buyer's credit report plus earnings, savings and debt information. The home buyer gets a nonbinding estimate of the mortgage amount the borrower would qualify for, or how much house the borrower can afford. Private mortgage insurance, or PMI Insurance that protects mortgage lenders against default on loans by providing a way for mortgage companies to recoup the costs of foreclosure . PMI is usually required if the down payment is less than 20 percent of the sale price.
Home buyers pay for the coverage in monthly installments.
PMI is usually terminated when the home buyer has built up 20 percent equity in the property. The formal document by which a claim in property is denied. Often used to clear a cloud on title . A radioactive gas found in some homes that in sufficient concentrations can cause health problems. Many home inspections check for radon.