PITI

Principal, Interest, Taxes, and Insurance, the most common components of a monthly mortgage payment.

Pre Approval

A document supplied by a lender who has reviewed your financial status and credit rating and is willing to underwrite up to a specific loan amount.  It also states which types of programs you qualify for and the interest rates that you will receive for those programs.

Preliminary Title Report

The results of a title search by a title company prior to issuing a title binder or commitment to insure clear title.

Prepayment Penalty

A fee paid to the lending institution for paying a loan prior to the scheduled maturity date.

Primary Residence

A residence which the borrower intends to occupy as the principal residence.

Principal Balance

Private Mortgage Insurance

Insurance written by a private company protecting the mortgage lender against loss resulting from a mortgage default.

Processing

The preparation of a mortgage loan application and supporting documentation for consideration by a lender or insurer.

PUD (Planned Unit Development)

A planned combination of diverse land uses, such as housing, recreation, and shopping in one contained development or subdivision. A major feature of a PUD includes areas of common land for use by the housing unit owners. The association of unit owners generally owns, pays fees, and maintains the common areas.

Purchase Contract (Agreement/Offer)

An agreement between a buyer and seller of real property, setting forth the price and terms of the sale. Also known as a sales contract.