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Mortgage and Real Estate Glossary ~ G

Garbage fees

Real estate slang for the additional costs that a lender and/or broker charge a borrower. Warehouse and administration fees are examples of "garbage" fees that you're required to pay at closing. Discount points and the broker origination fee are not garbage fees. The average cost of garbage fees can range from $25 to $500. You can see a breakdown of all your closing costs on the Good Faith estimate, which you receive from your lender or broker after you apply for a loan.

Gift

A sum of money given to a home buyer as a present. If relatives or a friend give you a helping hand towards your down payment, a lender will require that you complete and sign a form, called a gift letter, proving that the money doesn't have to be repaid. A lender will then request a copy of the gift-giver's bank statements to prove that he/she actually has the sum of money stated in the gift letter. When the funds are transferred into your banking account, you also need to give the lender a receipt of the transaction.

Gift deed

An official document that is used to give someone ownership of a property as a present. Gift deeds are commonly used to give a relative or friend a piece of property. You can use other types of deeds to do this, but gift deeds, traditionally name "love and affection" as the reasons for the present.

Good Faith Estimate

An estimate of the total costs to get a loan when buying or refinancing a home. After you apply for a loan, a lender or broker is required by law to give you a Good Faith Estimate within 3 days. The costs will include lender and broker fees, loan-related fees, and third-party fees, such as the title insurance and appraisal. Most of these fees must be paid on the closing date, the day when the sale or purchase of a home is completed.
See: Closing costs, Closing statement

Government mortgage

Any loan that is guaranteed by the government. Government loans are easier to qualify for since they normally require a fraction of the down payment needed for non-government loans-in some cases no down payment is needed at all. Government agencies, such as the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) only insure loans. This means if you default on the loan, the government will pay the lender part or all of the money that is owed on the home, making the loan less risky for lenders.
See: FHA mortgage, VA loan
Compare: Conventional loans

Government National Mortgage Association (Ginnie Mae)

A federal corporation that insures mortgage-backed securities, and offers financing options to home buyers. Ginnie Mae makes investing in mortgages as simple as investing in stocks and bonds. Ginnie Mae guarantees mortgage-backed securities, which are similar to bonds except the value is based on a group of mortgages and its interest rate. Since the U.S. government insures these securities, they're considered safe investments.

Grant deed

An official document that is used to transfer a property's ownership. A grant deed is the most common type of deed used to transfer property from a seller to buyer. Grant deeds are used for properties that are mortgaged and not mortgaged. Upon closing of the property's purchase/sale, the title company records the grant deed at the county courthouse and sends the buyer the original in the mail. In order to use a grant deed, the property must be clear of any claims.
See: Deed, Deed of trust

Grantee

A term for a person who becomes the new owner of a property. When you buy a home, you become the grantee when you receive a property's deed, signaling that you are the new owner. If you use decide to add a family member or spouse onto your property's title, they also become grantees.
Compare: Grantor

Grantor

A term for a person who hands over ownership of a property to someone else. When you sell your home, you become the grantor since you transfer the rights to your property to the buyer.
See: Deposit

Guarantee mortgage

A loan guaranteed by someone other than the lender or borrower. A government loan is an example of a guarantee mortgage since the government, a third party, promises to pay part or all of the loan if the borrower can't pay it (defaults).
See: FHA mortgage, VA loan

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