Repair Your Credit Profile

Terms used to refer to parties involved:

An agent is somebody who acts in behalf of another.

Mortgagor is the person obtaining the mortgage.

The mortgagee is the party which lends money in the mortgage agreements.

Terms used to refer to documents and paperwork:

An Agreement of Sale is a contract through which a seller agrees to sell and a buyer agrees to buy considering particular conditions signed by the parties involved. Similarly known as Binder, Purchase or Sales Agreement or Contract of Purchase.

The Certificate of Title is the document signed by a title examiner or attorney to assure the marketability and insurability of a seller’s title.

When the homeowner’s name is passed through to the new buyer, the document to show this is called The Deed.

Deed of Trust is an instrument whereby real property is given as security for a debt and it includes the borrower, the trustee and the lender.

To verify that a property is as described, an Inspection Certificate is created.

A written agreement to repay a loan is called a Mortgage Note.

A document outlining dates and amounts of payments is called a Promissionary Note.

The document that indicates rights of ownership and possession of particular property is generally called the Title.

Terms used to refer to the money, property and the like:

Appraisal means the estimate of market value as of a particular period of time.

A tax assesor will put an amount on a home called the Assessed Value.

A seller must recieve a Deposit or Ernst Money when a buyer is keen to purchase their property and has signed a paper to confirm this.

Equity is in real estate and is the amount the borrower has over the amount the he owes. Commonly, it is achieved through this formula: Market Value - Mortgage Balance = Equity

The Escrow is the fund, property, or other things of value left in trust to a third party. If all involved adhere to particular arrangements, the escrow may be relieved.

A Fixture is a former personal property currently attached to the real property and therefore is considered already a part of it which has to go with it when it is sold.

The Ground Rent is the rent paid for land with the terms of the ground lease.

Hazard Insurance protects properties against damages caused by fire, storms, and other common hazards.

Interest is a percentage of your mortgage that you incur for borrowing from the lender.

The Market Value is the highest value the buyer is willing to pay for and the lowest amount the seller is willing to sell with.

The Market Price is the figure that a property is on the market for.

The claim against real property that the buyer offers the lender as security for the money borrowed is called the Mortgage.

The first amount being lent to a borrower is The Principal.

Technorati Tags: Mortgage, mortgages, Personal Finance