1 Glossary

U

Underwriting: The process used to de-

termine loan approval. It involves evalu-

ating the property and the borrower's

credit and ability to pay the mortgage.

Uniform Residential Loan Applica-

tion: A standard mortgage application

you will have to complete. The form

requests your income, assets, liabilities,

and a description of the property you

plan to buy, among other things.

Unsecured Loan: A loan that is not

backed by collateral.

V

Veterans Affairs (U.S. Department

of Veterans Affairs): A federal govern-

ment agency that provides benefits to

veterans and their dependents, includ-

ing health care, educational assistance,

financial assistance, and guaranteed

home loans.

VA Guaranteed Loan: A mortgage loan

that is guaranteed by the U.S. Depart-

ment of Veterans Affairs (VA).

W

Walk-Through: A common clause in a

sales contract that allows the buyer to

examine the property being purchased

at a specified time immediately before

the closing, for example, within the 24

hours before closing.

Warranties: Written guarantees of the

quality of a product and the promise to

repair or replace defective parts free of

charge.

Federal Trade Commission

ftc.gov