Atkinson Construction Inc. is an approved builder with all local banks and
mortgage companies. Atkinson Construction is also an approved builder for
FHA, VA and Rural Development as well as the Citrus County SHIP Program which
provides help for first time home buyers who qualify for the program. In
addition, Kathie Atkinson is a licensed mortgage broker and would be glad to go
over all of your financing options. We can help arrange a no-obligation consultation or
put you in touch with a local lender so you can explore your financing options
and even pre-qualify for a loan if you wish, to help you make your Florida dream
home a reality.
Below is a glossary of common mortgage terms. In addition, you might
want to check out our online Mortgage Calculator. It will show you
various monthly payments depending upon the amount financed and the terms.
of Mortgage Terms
Adjustable Rate Mortgage, also known as
variable-rate mortgages, usually offer a lower
initial interest rate than fixed-rate mortgages.
Several types of adjustable rate mortgages are
available to meet your specific needs. Rates can
adjust either up or down depending upon current
market conditions and predetermined "caps" are
placed upon these loans so buyers can plan well
into the future.
Annual Percentage Rate (APR) is the total cost
of credit (including prepaid costs) expressed as
an annual percentage rate charged yearly.
Appraisal is a document supplied by a licensed
independent "third party" estimating the fair
market value of a particular property or home.
An "appraisal" allows both the buyer and lender
to determine estimated values of a property or
Conventional Mortgage is a mortgage loan other
than those insured or guaranteed by a government
agency such as the FHA (Federal Housing
Administration), the VA (Veterans
Administration), or other agencies.
Escrow is an amount set aside by the lender to
ensure that taxes, insurance and other premiums
are paid in a timely manner when due by a third
Fixed Rate Mortgage is a mortgage loan that
maintains the same interest rate throughout the
life of the loan.
Interest Rate is the percentage rate lenders
charge borrowers for use of their funds over an
extended period of time.
Lock In Fee is an amount charged by lenders to
guarantee an interest rate at a particular time
and day. Interest rates vary daily and often
several times during any given day.
Mortgage is a legal document pledging certain
property or properties as collateral for
repayment of a loan.
Origination Fee is an amount expressed either as
a percentage of the loan or set dollar amount
charged by a lender or broker for initiating,
obtaining funding, and coordination of the
Pre-Qualified is an informal estimate of a
borrower's ability to repay a loan based on
preliminary information obtained from the
borrower. Pre-qualifying allows a borrower to
obtain an estimate of what they can afford prior
to selection of a new home.
Pre-Approval is the preliminary approval for
obtaining a mortgage based on review of
available documents (ie. pay stubs, employment
records, bank statements, etc.) required by the
Private Mortgage Insurance (PMI) is an insurance
policy issued by a third party insuring that the
lender will be repaid in the event of default by
the borrower. Generally, PMI is required by
lenders who loan more than 80% of the appraised
value and can be removed once the borrower
obtains an 80% equity position.
Processing is the act of gathering necessary document(s) and verification(s) of supporting
documentation required by the lender.
"Processing" is usually performed by a third
party (individual or company) other than the
"originator" or "lender".
Settlement, Transaction "Closing" is the
process of ensuring that all parties are in
agreement with the "Terms and Conditions" of
funding the mortgage and the owner's right(s) to
the property. Settlements and/or Closings are
generally conducted at a Title Company or