Tools & Resources

Power of Attorney (POA)

A legal and notarized document authorizing someone else to act on your behalf if you are not able to attend closing. The document must specify the type of loan it is to be used for and include the property address. The closing agent will obtain and coordinate the POA document, which is to be recorded at closing.

Pre-Approval

The process by which you get a preliminary decision on a mortgage loan before making an offer on a home. Having pre-approval can give you an advantage over other homebuyers who may be interested in the same home, because it may give the seller more confidence in your ability to purchase the home.

Premium

The amount you pay at regular intervals to maintain coverage on your home insurance and flood insurance if required.

Prepayment

Paying all or part of your mortgage before it is due. Partial prepayments can reduce the amount of your loan. Many mortgage loans offer prepayment without a prepayment penalty — an important consideration when you compare loan programs.

Prepayment Penalty

An amount charged by a lender when you make a prepayment to pay the loan in full before the final term. Not all loan programs have a prepayment penalty.