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| recently sold properties that are similar in size end location to the property being purchased. |
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| a survey of attributes and selling process of comparable homes on the market or recently sold; used to help determine a correct pricing strategy for a seller's property. | |
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| a condition in a contract that must be met for the contract to be binding. | |
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| a binding legal agreement between two or more parties that outlines the conditions for the exchange of value (for example: money exchanged for title or property) | |
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| a mortgage loan not insured by HUD or guaranteed by the Department of Veterans Affairs. It is subject to conditions established by the lending institution and State statutes. The mortgage rates may vary with different institutions and between States. (States have various interest limits.) |
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| to transfer property or title from one person to another |
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| a person who signs a note and becomes liable for repayment of same with the borrower. |
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| a legal document that
formally conveys ownership of property from seller to buyer. | |
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| any provisions in a deed restricting ownership or use of the property--for example, limitations on rights-of-way, or easements granted to other parties. |
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| a
percentage of the purchase price, paid by the buyer when the Purchase and Sale agreement is signed and typically held in escrow until the transaction is completed |
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| a percentage of the purchase price that the buyer must pay in cash and may not borrow from the lender. | |
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| the deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. |
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| a legal right or interest in land that affects a good or clear title, and diminishes the land's value. It can take numerous forms, such as
zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants. | |
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| the value of a homeowner's unencumbered interest in real estate. Equity is computed by subtracting from the property's fair market value the total of the unpaid mortgage balance and any outstanding
liens or other debts against the property. A homeowner's equity increases as he pays off his mortgage or as the property appreciates in value. When the mortgage and all other debts against the property are paid in full the homeowner has 100% equity in his property. | |
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| a fund or account held by a third-party custodian until conditions of a
contract are met. | |
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| interest rates on this type of mortgage remain the same over the life of the loan. Compare to "adjustable rate mortgage." | |
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| a recognizable entity (such as a
kitchen cabinet, drape or light fixture) that is permanently attached to property and belongs to the property when it is sold. | |
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| an approximation of closing costs, which a lender is required to give to a prospective mortgage borrower within three days of the time an application for a loan is submitted. |
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| compensates for property damage from specified hazards such as fire and wind. | |
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| the professional scrutiny of a home to assess its overall condition and identify existing or potential structural and/or mechanical problems. |
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| U.S. Department of Housing and Urban Development. Office of Housing/Federal Housing Administration within HUD insures home mortgage loans made by lenders. HUD-1 Form Also known as the RESPA statement, detailing all the loan closing costs and itemizing all payments made by and due from both the buyer and the seller |
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| a lender's calculation of the percentage of income represented by a borrower's housing payments plus all other revolving debt payments. |
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| the cost of borrowing money, usually expressed as a percentage rate. | |
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| a security claim on property until a debt is satisfied. | |
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| an agreement whereby an owner engages a real estate company for a specified period of time to sell property, for which, upon the sale, the agent receives a commission. | |
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| the relationship between the mortgage on a property and its value. If the mortgage is $80,000 and the property is worth $100,000, the loan-to-value is 80 percent. |
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| the price that is established by present economic conditions, locations and general
trends. | |
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| the actual price at which a property sold. | |
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| security claim by a lender against property until the debt is paid. | |
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| a written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house. |
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| a system that provides to its members detailed information about properties for sale. | |
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| an application fee(s) for processing a proposed mortgage loan. | |
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| principal, interest, taxes and insurance, forming the basis for monthly mortgage payment. | |
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| a map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements. |
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| one percent of the loan principal. It's charged in addition to interest and fees. | |
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| written document giving authorization to one person to act on behalf of another |
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| the process of obtaining preliminary approval for a mortgage before application is complete. May or may not constitute a formal commitment by the lender to
make the loan |
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| payment of mortgage loan, or part of it, before due date. | |
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| a fee paid by a borrower who pays off the loan before it is due. | |
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| an informal estimate of the maximum mortgage a borrower could obtain, based on a calculation of available income and existing debt. |
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| the basic element of the loan as distinguished from interest and mortgage insurance premium. In other words, principal is the amount upon which
interest is paid. | |
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| an insurance policy that protects the lender should the borrower default on the mortgage. Usually required for borrowers whose down payment represents less than 20 percent of the purchase price. |
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a written agreement promising to repay a loan. |
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| divide or assess proportionately. | |
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| a licensed real estate agent who belongs tot he local or state affiliate of the the industry's professional trade
association, the National Association of Realtors (NAR). |
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| all financial transactions required to make the contract final | |
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| 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 him that a building is actually sited on the land according to its legal description. |
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| a document that indicates ownership of a specific property. | |
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| protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to either the mortgagor, as an " owner's title policy, " or to the mortgagee, as a "mortgagee's title policy." Insurance benefits will be paid only to the "named insured" in the title policy, so it is important that an owner purchase an
"owner's title policy", if he desires the protection of title insurance |
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| detailed examination of the entire document history of a property title to make sure there are no legal encumbrances. | |
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mortgages issued by lenders but guaranteed by the Veterans Administration and available only to eligible veterans and their spouses and Dependents. | |
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| a limited exemption from local zoning requirements |
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| a written or
implied guarantee that property (including mechanical systems or appliances) is in the condition described and will perform as promised |
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| the acts of an authorized local government establishing building codes, and setting forth regulations for property land usage. | |
