An estimate of value of property resulting from analysis of facts about the property; an opinion of value.

The borrower’s costs of the loan and term expressed as a rate. This is not their interest rate.

Form designed to provide disclosures that will be helpful to the borrowers in understanding all the costs of the transaction. This form will be given to the consumer by the lender three (3) business days BEFORE closing to review. This form is normally used for closings that involve a Lender/Mortgage Company.

The date the buyer and seller sign all documents prepared by the Lender and Title Company.

Sales that have similar characteristics as the subject real property and used for analysis in the appraisal. Commonly called “comps”.

Occurs when the borrower becomes contractually obligated to the creditor on the loan, not, for example, when the borrower becomes contractually obligated to the seller on a real estate transaction. The point in time when a borrower becomes contractually obligated to the creditor on the loan depends on applicable State law.

Limitations in the deed or other recorded document to a parcel of real property that dictate certain uses that may or may not be made of the real property.

The date the amounts are to be disbursed to a buyer and seller in a purchase transaction.

A portion of the down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment.

A right, privilege or interest limited to a specific purpose that one party has in the land of another.

As to a title insurance policy, a rider or attachment forming a part of the insurance policy expanding or limiting coverage.

The date the lender provides written authorization to the title company to disburse the loan proceeds.

Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyers often add liability insurance and extended coverage for personal property. This is completely SEPARATE from the Owners, Homeowners and Lender Title Insurance issued by the Title Company.

A trust type of account established by lenders for the accumulation of borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.

A document that is signed in order to be recorded by the county. These document’s focus on clear identification of parties and property, employ black/blue ink, provide the legal description, ensure it's an original or certified copy, and include all necessary signatures, notarizations, and recording references, if applicable.

A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.

This is the company/business that provides the funds to purchase the real estate for the Buyer’s. The funds are sent to the Title Company before closing from the Lender to which the Buyer’s then pay the mortgage payment to in order to payoff the Loan that was received to purchase the real estate.

A form of encumbrance that usually makes a specific parcel or real property the security for the payment of a debt or discharge of an obligation. For example, judgements, taxes, mechanic’s lien’s, mortgages.

Form designed to provide disclosures that will be helpful to borrowers in understanding the key features, costs and risks of the mortgage loan for which they are applying. Initial disclosure to be given to the borrower three (3) business days after loan application.

The instrument by which real property is pledged as security for repayment of a loan. Signing this document secures the Note for the Loan signed at closing.

A payment that includes Principle, Interest, Taxes and Insurance.

A written instrument whereby a principal gives authority to an agent to act on his/her behalf.

Land and any permanent structures or natural resources attached to it, like houses, buildings, trees, or minerals, representing both the physical property and the legal rights to it, encompassing residential, commercial, industrial, and vacant land types used for living, working, or investing. It's distinct from personal property (like vehicles) because it's immovable, and its value comes from its fixed location and the improvements on it. 

Filing documents affecting a real property with the appropriate government agency as a matter of public record.

Provide a complete breakdown of costs involved in a real estate transaction. (Majority of closings that use this documentation are cash closing’s but some lender closings also require the Settlement Statement instead of a Closing Disclosure).

Real Estate taxes are due a year in arrears. The manner of adjusting this tax is based upon the purchasers contract. Tax Proration is when the Sellers or Buyers give a credit to the other party, within the closing, based off the CURRENT tax rates at the time of closing.