If you are looking for the real deal on your next loan or mortgage, then it's always better for you to opt for the glossary or the terms that are often being said in this industry. Keep in mind that the loan and mortgage industry is now drawing more popularity across the globe and due to such reason, the industry is also implementing new terms and conditions. Constant modifications and additions are coming into act. This is the exact reason why customers need to stay updated with the terms that are now going high on use in the mortgage industry.
Additional security fee: An additional security fee is also know as the Mortgage Indemnity Guarantee Policy is nothing but the fee that will be taken to draw an insurance policy. Such insurance policy will often cover the lender when there is a default in payments. This is a good way for a lender to keep him away from the possible losses. The borrower has to pay the additional security fee along with the premium and the mortgages in advance. Although the borrower will have to pay the premium, then also he/she needs to keep in mind that such policies are often made for protection for the lender and not for the borrower.
Administration fee: The administration fee is a kind of fee that will come into act by the lender when the documentation work will be on progress. This is a part of the mortgage application process. It also includes the home valuation fee. The administration fee is a nonrefundable one. Even though you are not done with the valuation task and your application for mortgage has been rejected, then also the administration fee will be considered as a nonrefundable one.
Mortgage Fraud: Another thing you need to consider is the fraud that is going around the home loan industry. FBI has already warned about it to banks, lenders and prospective home buyers and investors as well. Before getting into any such deals please check the credibility of the lenders and make sure you have no chance of mortgage fraud. If you do not take care of this issue then your investment can become a great hurdle and instead of investment it may become a problem. So be careful and simply do more research Well, its time to move for your lender and track out more details in this regard.
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