Glossary

A written history of all the transactions bearing on the title to a specific tract of land. An abstract of title covers the period from the original source of title.
A buyer's or seller's agreement to enter into a contract and be bound by the terms of the offer.
An attachment to a contract to add, remove or amend specified terms or conditions.
A payment made by a borrower of more than the scheduled principal amount due in order to reduce the outstanding balance on the loan to save on interest over the life of the loan and/or pay off the loan early.
A preliminary analysis of a borrower's ability to afford the purchase of a home that takes into consideration factors such as income, liabilities and available funds, as well as the type of home loan, the likely taxes and insurance for the home, and the estimated closing costs. See also prequalification.
A feature of real property that, while not essential to the property's use, enhances its attractiveness and increases the occupant̢۪s or user's satisfaction. Natural amenities include a pleasant or desirable location (near water, scenic views, etc). Man-made amenities include swimming pools, tennis courts, community buildings and other recreational facilities.
The gradual reduction in the principal amount owed on a debt. During the earlier years, most of your payment is applied toward the interest owed. During the final years of the loan, most of your payment is applied to the remaining principal, unless there has been negative amortization.
A timetable or schedule to give you a breakdown of your monthly payments into principal and interest. You can use this schedule to figure out the amount of principal you'll repay during your mortgage term.
The amount of time required to amortize (or pay off) the loan. The amortization term is expressed in months. For example, for a 15-year mortgage, the amortization term is 180 months.
To repay a loan with regular payments that cover both principal and interest.
The total amount of gross income earned in one year. This does not need to include alimony, child support or separate maintenance income unless you want to have it considered as a basis of repaying an obligation.
Fees paid when you apply for your loan that are typically nonrefundable. They may include charges for items like a property appraisal and a credit report.
The Apply step is the process of providing financial and other information (such as employment history and proposed collateral) by a prospective borrower in conjunction with a request for credit.
A contingency in a sales contract that the property must appraise at the same value or more as your offering price.
The fee charged by an appraiser to determine an estimated value of property.
An informed written estimate of the value of property. When made in connection with an application for a loan secured by a home, the appraisal is usually performed by a professional appraiser. Sometimes called a property valuation. Also known as property value.
A person qualified by education, training and experience to estimate the value of real property.
An increase in the value of property over time. Important factors in a home's appreciation are its location, condition, and the selling price of similar homes in the area. Appreciation increases the amount of equity, which may also increase the amount you can borrow for a home equity loan or line of credit. The opposite of depreciation.
The Approved loan Amount is the amount of credit you are approved for.
The Approved Loan Amount is the amount of credit you will be approved for once the bank makes a credit decision.
The Approved Term is the number of months you are approved for that it will take to pay off a loan. The loan term is used to determine the payment amount, repayment schedule and total interest paid over the life of the loan.
The Approved Term is the number of months you will be approved for, once the bank makes a credit decision, that it will take to pay off a loan. The loan term is used to determine the payment amount, repayment schedule and total interest paid over the life of the loan.
The value of a property used to determine property taxes, based on a public tax assessor's opinion.
The amount of tax due to state government. May also refer to the amount due to common owners of a property (e.g., a homeowners association) for a special payment to cover expenses for improvements or maintenance, such as new sewers or roads.
A public official who establishes the value of a property for taxation purposes.
Property or a possession of value that a lender may consider in determining a borrower's creditworthiness. For example, real estate, stocks, mutual funds, cash and automobiles are all assets.
The method of a lender transferring a lien right in property to another.
The total amount of funds available to you from your own funds and/or other sources that can be used for your down payment and the closing costs associated with a loan.
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