830-438-4558

NMLS: 1771431

"CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.

THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV."

National Mortgage Licensing System Registry #1771431. Construction Financial Solutions is located at 18568 Forty Six Parkway, Suite 3002, Spring Branch TX 78070.

Lenders are required to provide the "Your Home Loan Toolkit", which has been provided by the Consumer Finance Protection Bureau created to comply with federal law pursuant to 12 U.S.C. 2604, 12 CFR 1024.6, and 12 CFR 1026.19(g). This is for all loan transactions effective 10/3/2015.

A to G | H to P | Q to Z

Qualifying Ratios - Calculations that are used in determining whether a borrower can qualify for a mortgage. There are two ratios. The "top" or "front" ratio is a calculation of the borrower’s monthly housing costs (principal, taxes, insurance, mortgage insurance, homeowner’s association fees) as a percentage of monthly income. The "back" or "bottom" ratio includes housing costs as will as all other monthly debt. TOP
Rate Lock (Lock In) - A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost. TOP
Real Estate Agent/Broker - A real estate agent has a state license to represent a buyer or a seller in a real estate transaction in exchange for a commission. Most agents work for real estate brokers. TOP
Real Property - Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof. TOP
Realtor - A real estate agent, broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors. TOP
Rescission - The cancellation of a contract by law or consent by the parties involved. TOP
Recording - The noting in the registrar’s office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record. TOP
Recording Fee- Money paid to an agent for entering the sale of a property into the public records. TOP
Refinancing - The process of paying off one loan with the proceeds from a new loan using the same property as security. TOP
Repossession - A legal process by which the lender forces the sale of a property because the borrower has not met the mortgage terms. Also known as foreclosure. TOP
Sale Agreement - A contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. TOP
Satisfaction - The payment of a debt which satisfies an obligation. TOP
Second Mortgage - A mortgage that has a lien position subordinate to the first mortgage. TOP
Secondary Mortgage Market - A financial market into which primary mortgage lenders sell mortgages to obtain funds to originate more new loans. Investors include Fannie Mae and Freddie Mac. TOP
Settlement (Closing) - A meeting between the buyer, seller, and settlement/closing agent at which title to property and funds legally change hands. TOP
Settlement Statement - See HUD-1 Settlement Statement. TOP
Simple Interest - Interest calculated only on the principal balance. TOP
Survey - A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features. TOP
Sweat Equity - The non-cash value put into a piece of property by the owner, such as do-it-yourself home improvements
Tax Lien - A claim against a property for unpaid taxes. TOP
Tenants in Common - As opposed to joint tenants or joint tenancy, when there are two or more individuals on title to a piece of property, this type of ownership does not pass ownership to the others in the event of death. TOP
Term - The amount of time necessary to pay off a loan. TOP
Title - A legal document evidencing a person's right to or ownership of a property. TOP
Title Company - A company that specializes in examining and insuring titles to real estate. TOP
Title Insurance - Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property. TOP
Title Search - A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property. TOP
Trust Account - Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller. TOP
Trustee - A legally empowered person who holds or controls a piece of property for another person. TOP
Truth-In-Lending-Act - A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges. TOP
Underwriting - The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan. TOP
Usury - Interest charged in excess of the legal rate established by law. TOP
VA (Veterans Administration) - 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. TOP
Variable Rate Mortgage - A loan with an interest rate that hinges on factors such as the rate paid on bank certificates and Treasury bills. TOP
Verification Of Deposit (VOD) - A document signed by the borrower's bank or other financial institution verifying the borrower's account balance and history. TOP
Verification Of Employment (VOE) - A document signed by the borrower's employer verifying the borrower's position and salary. TOP
Verification of Mortgage/Rent (VOM/R) - A document signed by the borrower's lender or landlord verifying the borrower's account balance and history. TOP
Waiver - A voluntary relinquishing of certain rights or claims. TOP
Worker's Compensation Insurance - A policy or endorsement covering the contractor, subcontractor and others who will be working on the subject property. TOP
Zoning Regulations - Regulations that control the use of land within a jurisdiction. TOP

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Terms and Definitions

TEXAS CONSTRUCTION LOANS

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Every industry has a set of acronyms and terms not commonly known to the general public, like LTV, DTI, PITI, VOE, VOD, LOE, CD, etc. Below is a list of words you may hear in communications during the loan approval process.

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