Glossary

A ratio that indicates what portion of a person's monthly income goes toward paying debts. Total monthly debt includes expenses such as mortgage payments (made up of PITI, or principal, interest, taxes and insurance), other expenses and other loan payments. Also known as debt-to-income ratio.
A dated financial statement (in table form) that shows your assets, liabilities and net worth.
A short-term loan with smaller payments for a certain period of time, and one or more large payments for the remaining principal and interest amounts due at a specified time.
A lump-sum payment, which is larger than your regular periodic payment, that's paid at the end of your loan repayment period.
The Bank Makes Credit Decision step is when a Bank makes a final decision on your mortgage loan request.
A proceeding in federal court altering or eliminating an eligible individual's obligations to repay some or all of his or her creditors. A borrower may relieve debts by transferring his or her assets to a trustee.
An amount equal to 1/100th of a percentage point. For example, a fee calculated as 50 basis points of N200,000 would be 0.50% or N1,000.
A written document that transfers title to personal property from seller to buyer.
An interest-bearing certificate of debt with a maturity date. A real estate bond is a written obligation that is usually secured by a mortgage or a deed of trust.
A violation of any legal obligation or contract.
A mortgage obtained on a borrower's present home (which is usually up for sale) to purchase a new home, pending the sale of the present home. Also known as a swing loan.
A detailed plan of income and expenses expected over a certain period of time. A budget can provide guidelines for managing future investments and expenses.
Local regulations that specify minimum structural requirements for design of, construction of, and materials used in a home or office building. Building plans are based on safety and health standards.
A real estate agent who represents the interests of the buyer and has fiduciary and/or statutory duties to the buyer.
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