Another term for closing.

This document provides an itemized listing of all charges related to the loan. A copy of the settlement statement is typically provided one day before closing. It is also referred to as the HUD 1 statement.

If a borrower is unable to make mortgage payments, an application for a short sale may be submitted. In this scenario, the lender agrees to a discount on the home to facilitate a quick sale and avoid foreclosure. Short sales involve extensive paperwork and can negatively impact credit. Consultation with a mortgage professional is recommended for those considering this option.

A market where investors purchase low cost homes for quick resale based on the expectation of improvement in housing values. This is often considered a high risk investment strategy.

A high risk loan with loosened lending and underwriting terms. While common in the past, sub-prime mortgages are rare in the current market, making it more difficult for individuals with lower credit scores to qualify. Due to the inherent risk, these loans historically carried higher interest rates and fees.

A review of the property to establish official boundary lines and identify easements, encroachments, rights of way, or improvement locations. A diagram is produced to indicate the shape, size, and features of the land. Surveys are conducted by licensed surveyors and are normally required by the lender.

A form of ownership where two or more persons share the property title.

A process where a lender utilizes another real estate professional to complete portions of the loan, such as origination, processing, underwriting, or preparation for the secondary mortgage market.

The official document declaring legal ownership of a property, also known as a deed.

The entity that typically handles tasks associated with the property title, including the title search and the provision of title insurance.

Insurance required to protect both the owner and the lender in the event of an ownership dispute. It serves as a guarantee that the title company performed a thorough search. The fee is included in the closing costs.

A research process conducted by the title company to ensure no liens or ownership issues exist prior to the completion of the purchase.

Fees charged by certain states and cities to record the transfer of real estate in public records.

One of the common indices upon which interest rates for an Adjustable Rate Mortgage (ARM) may be based.

A federally mandated document that discloses the interest rate, loan amount, the total amount paid upon the loan's maturity, and other relevant financial information.

The phase where a loan application is analyzed to ensure the ability to repay. Underwriters may request additional documentation to complete the loan package.

Fees paid at closing, which include points, broker fees, and insurance.

A federal agency that guarantees loans made to veterans and their spouses without requiring mortgage insurance.

A special home loan program for retired and active military personnel that offers 100% financing. There is no limit to the number of times a veteran can utilize the VA loan for a purchase or refinance.

A final inspection of the property was performed just before closing to ensure any agreed repairs are finished, fixtures are in place, and the property is in the expected condition.

A document stating that the property is owned free and clear of liens or ownership issues and that the owner has the legal right to sell.

Local laws regulating the use of land and buildings. These govern the establishment of commercial and residential areas, permitted structure types, lot sizes, and other features of land use.