W


Glossary

Walk- Through
A clause in a sales contract that allows the buyer to examine the property being purchased at a specified time immediately before the closing.


Warehouse Fee
A charge to a borrower when a mortgage banker or other small lendor must borrower money on a short-term basis to loan money on mortgage loans if the interest rate on the short-term loan is too large to make money on the spread the mortage broker will charge a warehouse fee to cover its costs until it can assemble enough loans in its virtual warehouse and sell them to someone else making enough money to pay off its short-term loans.



Warranty
Covenant by which the granter in a deed promises to secure to the grantee the estate conveyed in the deed and pledges to compensate the grantee. If the grantee is evicted by someone having better title. The convenant is binding on the granters heirs. Historically, a warrantor was expected to turn over land but cash compensation could be substituted.

W-2

A wage and tax statement provided by your employer annually. The W-2 form details your income and the various local and federal taxes withheld from your income. It is provided to the IRS along with your tax return.


Walk-through

A final inspection shortly before settlement to make sure the property is in the same condition that it was at the time the offer contract was written.


What-if analysis

An affordability analysis that is based on a what-if scenario. A what-if analysis is useful if you do not have complete data or if you want to explore the effect of various changes to your income, liabilities, or available funds or to the qualifying ratios or down payment expenses that are used in the analysis.


Windstorm insurance

This coverage is typically required in coastal areas and pays for property damage resulting from a windstorm. Like flood and earthquake coverage, windstorm insurance covers damage to the dwelling and, in some cases, personal property and living expenses if the dwelling is uninhabitable. Some states offer market assistance programs or joint underwriting associations to help homeowners find coverage in areas where coverage is scarce.


Wire transfer

A transfer of money from one person’s bank to another person’s bank account, either domestically or internationally.


Withdrawal

Also called a distribution, a withdrawal is the money you take from your financial account, such as an IRA. For retirement accounts, distributions made prior to age 59½ may be subject to a 10% penalty tax. All taxable distributions at any age are subject to ordinary income tax, and surrender charges may apply. You may incur fees or penalties when you make a withdrawal, depending on the type of product and whether the account is qualified or non-qualified.


Wrap fee

A fee or expense that is added to, or “wrapped around,” an investment to pay for one or more product features or services.


Wraparound Mortgage

A second mortgage issued when a lendor assumes the payments on a borrowers low-interest first mortgage (usually issued through a different lendor) and lends additional funds. Such a mortgage covers both the outstanding balance of the first mortgage and additional funds loaned.



Acronyms

WAC
Weighted Average Coupon


WHB
Warehouse Bank


WLPR
Whole Loan Purchase review


WSJ
Wall Street Journal