G

Good Faith Estimate: A written estimate of closing costs that a lender must provide within three days of receiving an application.

Government National Mortgage Association (GNMA): “Ginnie Mae,” buys FHA and VA loans from lenders, securitizes them and then sells them.

Grace Period: The amount of time that a loan payment made be made after its due date before incurring a late penalty or being reported to the credit bureaus.

Graduated Payment Mortgage (GPM): A mortgage with flexible-payment options that allow the payments to increase (negative amortization) for a specified period of time and then level off.

Grandfather Clause: A clause giving continued use, business, etc…, which otherwise would not be allowed because of a change in the law.

Grantee: The buyer or recipient in regards to a trust deed.

Grantor: The party who is the seller in regards to a trust deed.

Gross Income: The income of the borrower before taxes and other expenses are deducted. Usually used in the pre-approval process with lenders.

Guaranty: They party who is financially and contractually obligated to pay a debt if the original party fails to make the payment or otherwise not perform what was contractually agreed upon.