What if I am confused about a particular term or condition?

Seek answers to any questions you may have

Buying a home is probably the largest purchase you’ll ever make. This is why you want to make sure to understand every detail before you sign on the dotted line. When you’re in the process of applying for a mortgage, don’t just assume that you know what something means. Ask your mortgage company or broker for clarification about anything that may be unclear.

For example, you might assume that a VA guarantee on a mortgage loan means that the VA guarantees your approval for a mortgage, when in fact the VA has nothing to do with the approval process. In this case, you still need to be credit-worthy to get approved.

Another relatively common misconception when it comes to mortgage loan terminology is the “good faith estimate” given by the lender, which is a document that lists the fees associated with the loan. Many borrowers assume that the good faith estimate is more concrete than it actually is. In reality, the estimate can sometimes be very different from the actual total.

Don’t simply assume that you understand everything if you have not received a full explanation of all the terms that are being used in your application process. Be sure to seek out answers to any questions that you may have.