Real Estate Glossary
Amortize "to write off a cost gradually over a period of time."
Appraisal the estimated value of a property.
Buydown " a builder early years
Closing point at which finalize sale of
Closing Costs " is paid
Deed of Trust " as a promissory note
Down Payment " reduce one's
Equity " amounts owed
Escrow " promisee on
Fixed-Rate Mortgage " and principal
Graduated Payment Mortgage (GPM) a mortgage with low initial monthly payments which gradually increase over a specified time frame.
Growing Equity Mortgage (GEM) A fixed rate mortgage on which the monthly payments increase over time according to a set schedule.
Home Equity Line-of-Credit (HELOC) a loan whereby the lender agrees to lend a maximum amount within an agreed period, where the collateral is the borrower's equity in their house.
Home Inspection an examination of the condition of a home, prior to selling a home.
Lien another person an obligation
Origination Fee an upfront fee charged by a lender for processing a new loan application, used as compensation for putting the loan in place.
Preapproval a loan approval by a lender to a potential borrower.
Prepaids payments made by a buyer at a closing, made in advance of their official due date.
Prequalification an evaluation made of a person's qualifications for a loan.
REALTOR® a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its Code of Ethics.
Title Insurance insurance against title defects.
Truth in Lending Act (TILA) a federal law requiring the disclosure of costs of financing.
Walk-Through Inspection an inspection performed by the purchaser after a closing to finalize the agreement and ensure that the property is in agreed upon condition.