Serving Forsyth, Fulton, and Gwinnett Customers with Home Mortgages since 1996

We have refinanced with Avalon multiple times, and our experiences could not have been better. Avalon's staff is honest, professional, and efficient. This is an exceptionally well-managed company.  - Waymon and Pat
Adjustable Rate Mortgage - Mortgage that has a fixed rate for a pre-determined amount of time, after which the rate will increase based on the terms of the Note.

Adjusted Gross Income- The gross income minus all deductions.

Amortization- The gradual reduction of principal owed through payment at regular intervals. As time goes on, more of the monthly payment is applied towards principal and less towards interest.

Appraisal- A written document showing an estimate of the Fair Market Value (“FMV”) of the subject property.

Cash-Out Refinance- The amount of the money received from the new loan exceeds the total of the money needed to repay the existing mortgage and closing costs, if included in the loan.

Closing- A closing includes the delivery of the Deed, the signing of the Note, and the disbursement of the funds necessary to a loan transaction.

Conventional Loan- A mortgage loan neither insured by the FHA nor guaranteed by the VA. It is
government backed by FHLMC of FNMA and has many guidelines to fall into this category.

Co-Signer- One who is obligated to the debt in an equal amount to the borrower. The co-signer is equally responsible for the payments but may have no interest in the title of the property.

Credit Score/Rating- An evaluation of one’s ability to repay a loan. It is based on a person’s current financial situation as well as past performance in debt repayment. It can also be referred to as a Beacon Score, FICO score, or Empirica score.

Debt- Borrowed money, the repayment, which may be either secured or unsecured, with various repayment options and schedules.

Debt-to-Income Ratios- Calculations used to determine whether a borrower can qualify for a mortgage. They consist of two separate calculations: monthly housing expense ratio to income ratio and total obligations to income ratio, often referred to as front and back end ratios.

Deed- The written document by which ownership of land is transferred.

Discount- An amount charged to the borrower by the lender in order to obtain a lower than par interest rate.

Earnest Money Deposit- Money paid by the borrower to the seller in a purchase transaction to show that the buyer’s offer is being made in good faith. The earnest money is usually applied toward the down payment.

Equity- The difference between the fair market value of a home and what is currently owed on the property in debt.

Escrow Payment- The portion of the monthly payment held by the lender to pay for taxes, hazard insurance, mortgage insurance, and other items as they become due on the property.

FHLMC- Freddie Mac, a private corporation authorized by congress that sells participation sales certificated secured by pools of conventional mortgage loans.

FNMA- Fannie Mae, a tax paying corporation created by congress to support the secondary mortgage market. It purchases and sells conventional home mortgages.

Fixed Rate Mortgage- A mortgage that provides for one fixed interest rate over the life of the loan.

Foreclosure- An authorized procedure taken by a lender, under the terms of the mortgage, to have the sale of the subject property applied to the defaulted debt.

Hazard Insurance- Insurance which compensates for natural disasters to the property.

Investment Property- Real property acquired for the purpose of realizing a profitable return; also known as a rental property.

Lien- The right given by law to satisfy debt. A claim of one person on the property of another as security for a debt or charge.

LTV (Loan-to-Value)- The relationship between the amount of debt or mortgage on a property to the fair market value or appraised value.

Mortgage Insurance (MI)- Insures the lender against loss in the event of a default on the mortgage under a conventional loan.

Mortgage Broker- A firm or individual that brings the borrower and lender together and receives a commission for doing so. A mortgage broker does not service the loan.

Note- The collateral for the loan given by the lender to the borrower. It is a document in which a promise is made to pay a stated amount on a specific date. It states the terms for the repayment of the loan.

Origination Fee- The fee charged by mortgage companies to process, underwrite, and close a loan. It is usually a percentage of the loan amount.

Par- The face value of a mortgage where there are no premiums (yield) or discounts added.

PITI- Stands for principal, interest, taxes and insurance. The four items usually included in your overall monthly mortgage payment.

Prepaids- Items which are payable at closing. These include: interest, mortgage insurance, hazard insurance, flood insurance, and escrow reserves.

Processing- The preparation of a mortgage loan application and supporting documents for consideration by a lender.

Rescission (or Right to Cancel)- Cancellation of a contract of transaction. The borrower in a refinance loan has a three day right to cancel the loan after closing.

RESPA (Real Estate Settlement Procedures Act)- Federal law that requires lenders to provide home mortgage borrowers with information of known or estimated settlement costs.

Survey- A measurement of land, prepared by a land surveyor showing the location of the land with
reference to a known point, its dimensions, and the locations and dimensions of any improvements.

Title- The rights of ownership and possession of a particular property and the documents that prove those rights.

Title Insurance- A contract by which a title insurance company agrees to pay the lender or borrower a specific amount for any loss caused by defects or missed liens to the title of real estate.

Underwriting- The process of approving or denying a loan based on an evaluation of the property and the applicant’s ability to repay the loan. The underwriter analyzes the risks involved and selects an appropriate loan term and interest rate based on the guidelines or credit report fee and appraisal fee online.
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" We would like to take this opportunity to tell you how much we appreciated the way in which the refinancing on our home was handled by our loan officer.  He did his very best to make this process as easy as possible for us.  He made the trip to our home to talk to us at our convenience and let us know the process we would be going through... He also got the closing close to our home so we would not have a long drive... He was referred to us by friends and we are very thankful for that.  We will definitely refer him to anyone who needs his expertise.  Please thank him again for us. " - Wanda and Russell