 Glossary A-B |
Glossary E-L |
| Glossary C-D |
Glossary M-Z |
Certificate of Eligibility
A document issued by the Veterans Administration that certifies a veteran's eligibility to get a VA loan.
Certificate of Reasonable Value (CRV)
Issued by the Veterans Administration on VA loans after the appraisal has been completed.
chain of title
A report showing the transfers of ownership of a certain piece of property over the years.
clear title
A title has no liens or judgments against it.
closing
The instance where all documents have been signed and paperwork is completed. In Utah, this happens before "recording" and "funding." Buyers typically don't take official ownership of a property until after the funds have cleared; usually the day after closing.
closing costs
Monies required to complete the transaction of a property sale. These are monies actually due at closing. There are two kinds: "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are one-time costs incurred in the purchase of a home. "Pre-paids" are costs that are incurred recur over time, like homeowners insurance and taxes. A lender tries to estimate how much both of these costs will be in their "Good Faith Estimate" which they have to disclose to the borrower within three days of receiving a home loan application.
co-borrower
Someone else listed on the loan and title and who is responsible for payment. Used sometimes when one's own borrowing ability is insufficient.
commission
This is how many sales agents are paid--realtors, lenders, etc. When buying a home, the commission is usually paid out of the charges paid by the seller or buyer in the purchase transaction.
comparable sales
Also referred to as "comps," this is the comparison of a property in question and properties that are very similar to it that have recently sold. These help establish and justify the cost of a certain property.
contingency
A condition that must be met before things are final. Some home offers have a contingency that the buyer sell their home before the offer is honored.
conventional mortgage
All regular home loans besides government loans like VA and FHA.
convertible ARM
A mortgage whose rate is adjustable. It allows the mortgage borrower to change from a variable rate to a fixed one in a set amount of time.
credit
A measurement of how trusted you are with money.
credit history
A record of a someone's history in dept repayment. Lenders evaulaute a borrower's credit history before deciding to grant (or not) their loan.
creditor
An institution or individual who is owed money.
credit report
A printed report of someone's credit history, made by one of three major credit reporting agencies.
debt
The amount that someone owes to someone else.
deed
The document conveying property title.
default
When mortgage payment is not made, usually after 30 days post due date.
delinquency
Not making mortgage payments. Although most assess a late fee after the due date, borrowers are reported as delinquent and in default after 30 days late and the borrower is reported to credit agencies.
depreciation
The loss of value a piece of property has due to passing time, changes in the market, etc. The opposite of appreciation.
down payment
The portion of a purchase price that is due at the time of purchase. This cannot be financed, but must be brought in cash.
