 Agent |
Get
pre-approved for the purchase: This takes very
little time and is of great value. At this time,
you will identify the price range for which you
qualify and what kind of home/amenities fit your
lifestyle.
|
| Appraisal |
An
expert judgment or estimate of the quality or
value of real estate as of a given date.
|
| Bill
Of Sale |
An
instrument which transfers title to personal
property (chattels); a "Deed" transfers real
property.
|
| CCR
Covenants Conditions and Restrictions |
| A document that
controls the use, requirements and restrictions
of a property. |
Certificate
or Reasonable Value (CRV) |
A
document that establishes the maximum value and
loan amount for a VA guaranteed mortgage.
|
| Certificate
Of Title |
A
document signed by a title examiner or attorney
stating that the seller has a good marketable
and insurable title.
|
| Closing
Statement (settlement) |
The
computation of financial adjustments between
buyer and seller as of the day of closing a sale
to determine the net amount of money which buyer
must pay to seller to complete purchase of the
real estate and seller's net proceeds. Also, "settlement
sheets," "HUD-1."
|
| Commission |
Payment
to a real estate broker for services performed.
|
| Condominium |
A
form of real estate ownership where the owner
receives title to a particular unit and has a
proportionate interest in certain common areas.
The unit itself is generally a separately owned
space whose interior surfaces (walls, floors
and ceilings) serve as its boundaries.
|
| Contingency |
A
condition that must be satisfied before a contract
is binding. For instance, a sales agreement may
be contingent upon the buyer obtaining financing.
|
| Deed |
A
formal written instrument by which title to real
property is transferred from one owner to another.
Also, "conveyance".
|
| Deed
Of Trust |
Like
a mortgage, a security instrument whereby real
property is given as security for a debt. However,
in a deed of trust there are three parties to
the instrument; the borrower, the trustee, and
the lender (or beneficiary).
|
| Due-On-Sale
Clause |
An
acceleration clause that requires full payment
of a mortgage or deed of trust when the secured
property changes ownership.
|
| Earnest
Money |
The
portion of the down payment delivered to the
seller or escrow agent by the purchaser with
a written offer as evidence of good faith.
|
| Equity |
The
interest or value which owner has in real estate
over and above the debts against it. (Sales Price
- Mortgage Balance - Equity).
|
| Escrow |
A
procedure in which a third party acts as a stakeholder
for both the buyer and the seller, carrying out
both parties' instructions and assumes responsibility
for handling all of the paperwork and distribution
of funds.
|
| Federal
National Mortgage Association (FNMA) |
Popularly
known as Fannie Mae. A privately owned corporation
created by Congress to support the secondary
mortgage market. It purchases and sells residential
mortgages insured by FHA or guaranteed by the
VA, as well as conventional home mortgages.
|
| Fee
Simple |
An
estate in which the owner has unrestricted power
to dispose of the property as he wishes, including
leaving by will or inheritance. It is the greatest
interest a person can have in real estate.
|
| Fixture |
What
was formerly personal property which is now permanently
attached to real property and goes with the property
when it is sold.
|
| Graduated
Payment Mortgage |
A
residential mortgage with monthly payments that
start at a low level and increase at a predetermined
rate.
|
| Hazard
Insurance |
Protects
against damages caused to property by fire, windstorms,
and other common hazards.
|
| Home
Inspection Report |
A
qualified inspector's report on a property's
overall condition. The report usually includes
an evaluation of both the structure and mechanical
systems.
|
| Home
Warranty Plan |
Protection
against failure of mechanical systems within
the property. Usually includes plumbing, electrical,
heating systems and installed appliances.
|
| Joint
Tenancy |
An
equal undivided ownership of property by two
or more persons. Upon the death of any owner,
the survivors take the decedent's interest in
the property.
|
| Listing
Contract |
Between
a home owner (as principal) and a licensed real
estate broker (as agent) by which the broker
is employed to market the real estate within
a given time for which service the owner agrees
to pay a commission. Also, "listing agreement".
|
| Loan
Commitment |
A
written promise to make a loan for a specified
amount on specified terms.
|
| Loan-To-Value
Ratio |
The
relationship between the amount of the mortgage
and the appraised value of the property, expressed
as a percentage of the appraised value.
|
| Market
Value |
The
highest price which a buyer, ready, willing and
able but not compelled to buy, would pay, and
the lowest price a seller, ready, willing and
able but, not compelled to sell, would accept.
Basis for "listing price', or "asking price".
|
| Mortgage |
A
lien or claim against real property given by
the buyer to the lender as security for money
borrowed.
|
| Mortgage
Life Insurance |
A
type of term life insurance often bought by mortgagors.
The coverage decreases as the mortgage balance
declines. If the borrower dies while the policy
is in force, the debt is automatically covered
by insurance proceeds.
|
| Mortgage
Note |
A
written agreement to repay a loan. The agreement
is secured by a mortgage, serves as proof of
an indebtedness, and states the manner in which
it shall be paid. Also, "deed of trust note."
|
| Negative
Amortization |
Negative
amortization occurs when monthly payments fail
to cover the interest cost. The interest that
isn't covered is added to the unpaid principal
balance, which means that even after several
payments you could owe more than you did at the
beginning of the loan. Negative amortization
can occur when an ARM has a payment cap that
results in monthly payments that aren't high
enough to cover the interest.
|
| Origination
Fee |
A
fee or charge for work involved in evaluating,
preparing, and submitting a proposed mortgage
loan. The fee is limited to 1 percent of FHA
and VA loans.
|
| PITI |
Principal,
Interest, Taxes and Insurance.
|
| Planned
Unit Development (PUD) |
A
zoning designation for property developed at
the same or slightly greater overall density
than conventional development, sometimes with
improvements clustered between open, common areas.
Uses may be residential, commercial or industrial.
|
| Point |
An
amount equal to 1 percent of the principal amount
of the investment or note. The lender assesses
loan discount points at closing to increase the
yield on the mortgage to a position competitive
with other types of investments.
|
| Pre-Payment
Penalty |
A
fee charged to a mortgagor who pays a loan before
it is due. Not allowed for FHA or VA loans.
|
Principal
|
This
word has several meanings - a) to denote the
most important; - b) a capital sum lent on
interest; - c) one who appoints an agent to
act on their behalf; - d) either party to a
contract.
|
| Prorate |
To
allocate between seller and buyer their proportionate
share of an obligation paid or due. For example
a prorate on real property taxes, fire insurance,
or condominium fee.
|
| Purchase
Agreement |
A
written document in which the purchaser agrees
to buy certain real estate and the seller agrees
to sell under stated terms and conditions. Also
called a sales contract, earnest money contract,
or agreement for sale.
|
| Realtor |
A
real estate broker or associate active in a local
real estate board affiliated with the National
Association of Realtors®.
|
| Regulation
Z |
The
set of rules governing consumer lending issued
by the Federal Reserve Board of Governors in
accordance with the Consumer Protection act.
|
| Survey |
A
map or plat made by a licensed surveyor showing
the results of measuring the land with its elevations,
improvements, boundaries, and its relationship
to surrounding tracts of land. A survey is often
required by the lender to assure a building is
actually sited on the land according to its legal
description.
|
| Tenancy
In Common |
A
type of joint ownership of property by two or
more persons with no right of survivorship.
|
| Title
Insurance |
Protects
lenders and home owners against loss of their
interest in property due to legal defects in
title.
|
| Title
Search or Examination |
A
check of the title records, generally at the
local courthouse, to make sure the buyer is purchasing
a house from the legal owner and there are no
liens, overdue special assessments, or other
claims.
|
| Transfer
Tax |
State
tax, local tax (where applicable) and tax stamps
(in some areas) required by law when title passes
from one owner to another.
|
