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|1003: A loan application that
needs to be completed in order to get a loan approval.
401(k): An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes and provided by employers that are private corporations.
403(b): An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes and provided by employers that are not for profit organizations.
Abstract of Title: A summary of the public records relating to the title to a particular piece of land reviewed by an attorney or title insurance company to determine whether there are any title defects which must be cleared before a buyer can purchase clear, marketable, and insurable title.
Acceleration Clause: A clause in your mortgage that gives right to lender to demand repay the loan balance immediately for various reasons such as the sale of the property, or a delinquency in the repayment of the note.
Acceptance: A legal term to describe event when the buyer offers to buy and the seller accepts the offer.
Account Executive: A representative of a lending institution who represents the borrower to the lending institution to help him/her secure a loan.
Acknowledgment: A formal declaration made by a person to a notary public, or other public official authorized to take acknowledgements, that the instrument was executed by him and that it was his free and voluntary act.
Ad Valorem: Translates to "according to value." A method of imposing a tax on the ownership of real property.
Adjustable-Rate Mortgage: A mortgage in which the interest is not fixed but changes periodically, according to corresponding fluctuations in an index.
Adjustment Date: The date that the interest rate changes on an adjustable-rate mortgage (ARM).
Adverse Possession: The right of an occupant of land to acquire title against the real owner.
Affidavit: A written statement or declaration, sworn to or affirmed before an officer, who has authority to administer an oath or affirmation.
Affirmation: A solemn declaration made under the penalties of perjury by a person who conscientiously declines taking an oath. Also known as Oath.
Agency: A relationship in which the agent is given the authority to act on behalf of another person. In real estate transactions, usually the seller is the principal, and the broker is the agent. In an agency relationship, the principal delegates to the agent the right to act on his or her behalf in business transactions and to exercise some discretion while so acting.
Agreement of Sale: An agreement for the purchase or sale of real property; A written contract between the seller and buyer in which they both agree on the terms and conditions of the sale.
All-Inclusive Mortgage: A loan that allows an existing loan to be refinanced at an interest rate between the original loan rate and the currently prevailing market rate.
All-Inclusive Trust Deed: A loan that allows an existing loan to be refinanced at an interest rate between the original loan rate and the currently prevailing market rate.
Amortization: To reduce a debt by regular payments of both principal and interest, as opposed to interest only payment. The operation of paying off indebtedness, such as a mortgage, by installments. The conventional amortization periods are 15 or 30 years.
Amortization Schedule: A table which shows the payment amount applied toward the principal and the interest amount over the life of the loan. The gradual decrease of the loan balance should also be shown until it reaches zero.
Annual Percentage Rate: The interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account point and other credit cost. the APR allows home buyers to compare different types of mortgages based on the annual cost for each loan.
Application: A form used to apply for a mortgage loan. Types of requested information on a mortgage loan application include: borrower’s income, credit history, savings, assets, debts, etc.
Appraisal: An estimate of value of property resulting from an analysis of facts about the property, usually based on an analysis of comparable sales of similar homes nearby. Also an opinion of value.
Appraised Value: An estimate of value of property resulting from an analysis of facts about the property, usually based on an analysis of comparable sales of similar homes nearby. Also an opinion of value.
Appraiser: An individual qualified by education, training, and experience to estimate the value of real property and personal property. Some appraisers work directly for mortgage lenders, but most are independent.
Appreciation: The increase in the value of a property due to changes in market conditions, inflation, etc.
Appurtenance: Something that belongs to the land and transferred with it, such as buildings, fixtures, etc.
Assemblage: Putting together two or more lots to form a large parcel.
Assessed Value: A value placed upon a property by the tax assessor.
Assessment: The valuation of property for tax purposes.
Assessor: A public official who determines property value for taxation purposes.
Asset: Monetary value items owned by an individual. Assets that can be quickly converted into cash are called "liquid assets." These include bank accounts, stocks, bonds, mutual funds, etc. Other assets include real estate, personal property, and debts owed to an individual by others.
Assignment: Transfer of mortgage ownership from one company or individual to another company or individual.
Assumable Mortgage: A mortgage that can be assumed by a qualified buyer when a home is sold.
Assumption: A buyer "assumes" or takes over the seller’s mortgage.
Attachment: Seizure of property by court order.
Attorney in Fact: A person who is authorized to perform certain acts for another under a Power of Attorney.