Montrose, CO Office

Moab, UT Office

Agreement of Sale - Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.

Alternative Documentation – A method of documenting a loan that relies on information the borrower is likely able to provide instead of waiting as a substitute for verification sent to third parties to confirm statements made in the loan application. For example, traditional full documentation calls for the lender to get a written verification of bank balance directly from the borrower’s bank. Under alternative documentation, the lender instead relies upon copies of bank statements provided by the borrower.

Amortization – A monthly repayment schedule according to which a loan is repaid in fixed payments of combining principal and interest. For the first few years, most of each payment is applied toward interest. During the final years of the loan, payment amounts are applied almost exclusively to the remaining principal.

Annual Percentage Rate (APR) – The cost of a mortgage expressed as a yearly rate. This percentage takes into account interest, points, origination fees, and mortgage insurance,appraisal, credit report and some other lender fees, and will be slightly higher than the interest rate on the loan.  You should be careful when comparing your APRs from one lender to another.  Some lender only include discount points in their APR and leave out their other fees.  First Mortgage Corporation include discounts and other fees to more accurately reflect your true costs, which eliminates surprises at the closing table. 

Application - An initial statement of personal and financial information required to approve a loan provided by the borrower(s) and is used to initiate the approval process for a loan.