Glossary

A deposit made by the potential home buyer to show that he or she is serious about buying the house.
A right of way giving persons other than the owner access to or over the owner's property.
An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
The right of a government to take private property for public use upon payment of fair compensation to the owner. Eminent domain is the basis for condemnation proceedings.
A special Fannie Mae housing initiative that offers several different ways for employers to work with local lenders to develop plans to assist their employees in purchasing homes.
An improvement that physically intrudes or trespasses on another's property.
Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, deeds or restrictions.
A person who signs a check or promissory note over to another party.
A federal law that requires lenders and other creditors to make credit available without discrimination based on race, color, religion, national origin, age (provided that the applicant has the capacity to enter into a binding contract), sex, marital status, the fact that all or part of the applicant̢۪s income derives from any public assistance program, or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act.
The difference between the fair market value (appraised value) of your home and your outstanding mortgage balance(s) and other liens.
The process of placing an amount of money and documents with a neutral third party, called an escrow agent, who's given the authority to deposit, disburse and distribute to the proper parties all the money and documents involved in a real estate transaction. The purpose is to protect both the buyer and seller in the transaction from the other side's unauthorized use of funds or withholding of documents and ensures an arm's-length transaction between both sides. Also commonly used to mean an escrow or impound account, which is required by many lenders and held by the lender during the term of the loan. This account is used to hold the borrower's advance payments toward insurance and property taxes until they become due.
An account specifically set up by a lender to hold funds that are set aside for the payment of property taxes and insurance. These funds are held in escrow until disbursed on behalf of the borrower to the appropriate parties.
The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance and other bills when due.
Funds collected by the loan servicer and set aside in an escrow account to pay borrower expenses such as property taxes, mortgage insurance and hazard homeowners insurance.
The use of escrow funds to pay real estate taxes, homeowners insurance, mortgage insurance and other property expenses as they become due.
The portion of a borrower's monthly payment that is held by the loan servicer to pay for taxes, hazard homeowners insurance, mortgage insurance, lease payments and other items as they become due. Known in some states as impounds or reserves.
Monies collected by the lender from the borrower in order to pay the property taxes and homeowners insurance premiums when they become due.
The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.
The Estimated Customer Value is the applicant̢۪s stated fair market value of the collateral property. Fair market value is the likely selling price of a home between a willing buyer and a willing seller on the open market.
The estimated funding date is the date we anticipate authorizing the settlement agent to disburse your loan proceeds. If your loan program is rescindable, funding will not occur until 3 business days after you sign the loan documents.
A legal proceeding by a landlord to recover possession of real property from the tenant.
The report on the title of a property from the public records or an abstract of the title.
A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time but reserves the owner's right to sell the property alone without the payment of a commission.
The Existing Line Amount is the amount of your current Home Equity Line of Credit.
Back to Top

Back to Top