Temporary buydown: A reduction in the mortgage payment in the early years of the loan in exchange for an upfront cash payment provided by the home buyer, the seller or both.

Title: A legal document evidencing a person's right to or ownership of a property.

Total expense ratio: The ratio of housing expense plus current debt service payments to borrower income, which is used (along with the housing expense ratio and other factors) in qualifying borrowers.

Title Company: a company that specializes in examining and insuring the title to real estate.

Title Insurance: insurance protecting the lender and buyer against losses arising from disputes over ownership of a property.

Treasury index: the average rate for Treasury securities of a given maturity used to determine interest rate changes for certain adjustable rate mortgages published weekly in The Wall Street Journal.

Truth-in-Lending: a federal law requiring lenders to fully disclose, in writing, the terms and conditions of a note and mortgage, including the annual percentage rate (APR) and other charges.

Underwriting: The process of evaluating a mortgage loan application to determine the risk involved for the lender. It involves an analysis of the borrower's creditworthiness and the quality of the property itself.

Underwriting requirements: The standards imposed by lenders in determining whether a borrower qualifies for a mortgage loan. These standards are more comprehensive than qualification requirements in that they include an evaluation of the borrower's creditworthiness.

VA Loan: A loan that is guaranteed by the U.S. Department of Veterans Affairs. Also referred to as a "government" mortgage.

Waive escrows: The borrower has the right to pay taxes and insurance directly. This is in contrast to the standard procedure where the lender adds a charge to the monthly mortgage payment that is deposited in an escrow account, from which the lender pays the borrower's taxes and insurance when they are due. On some loans, lenders will not waive escrows, and on loans where waiver is permitted, lenders are likely to charge for it as it increases the lenders risk if the borrowers neglect to pay taxes and insurance on the property.

Wholesale lender: A lender who provides loans to borrowers through mortgage brokers or correspondents. The mortgage broker or correspondent initiates the transaction and take the borrower's application.