When a borrower refinances his mortgage at a higher amount than the current loan balance.
A document which states that a dwelling has been inspected and has met all building codes. This document is often required by lenders before they will authorize a loan to close.
The chronological listing of transfers of a piece of property from the original owner to the present owner.
The final stage of a real estate transaction in which documents are signed and executed. Depending upon where you live and local customs, funds may be exchanged and title transferred at the time of the closing. In some areas, transfer of title and the exchange of funds takes place subsequent to document signing and execution. Your ENTITLE DIRECT Closing Specialist will be able to assist you in scheduling your closing, and will advise you of the local customs and procedures regarding the transfer of title and exchange of funds.
The adjustment at closing for certain items for which the seller has made advanced payment or for which the seller has not paid as of the closing related to his/her ownership of the property prior to closing. Examples include reimbursement to the seller for taxes paid in advance, fuel remaining in fuel tank, or a credit to the buyer for unpaid taxes that the seller will pay from the closing funds. It is important to note that closing adjustments often have a significant impact on the amount of funds the seller will receive or the buyer will be required to bring to closing.
The unnecessary level of stress felt by consumers in the time period leading up to and including their home closing or refinancing. This is usually brought on by receiving the HUD-1 Settlement Statement and other documents for the first time at closing. Symptoms include feeling uninformed and writing checks for last-minute surprise closing costs. Recommended Treatment: ENTITLE DIRECT.
Fees and costs that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include appraisal fees, credit report fees, discount points, bank fees, title searches, title insurance, surveys, transfer taxes, deed-recording fees and credit report charges. Your ENTITLE DIRECT Closing Specialist will provide you with an estimated HUD-1 Settlement Statement throughout the closing that will be updated as new information is received. This will help you to prepare for your closing and to alleviate some of the stress related to the closing process.
Any additional borrower(s) whose name(s) appear on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have a direct obligation to repay the loan as opposed to a co-signer whose obligation to repay the loan does not arise until the default of the borrower.
An individual who guarantees payment of a loan whose obligation to pay is contingent upon the default of the borrower.
Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Some common areas are: hallways, staircases, parking areas, and recreational facilities.
An individual home unit that is located within a larger building and/or common area in which the unit owner owns the right to the air space within the unit and often the dry wall, and a corporation established at the time the condominium is created owns the land on which the condominium sits and the common areas. Your lender will require information from the Condominium Board of Directors and/or Management Company regarding insurance, common charges, by-laws of the Condominium Association, etc. Your ENTITLE DIRECT Closing Specialist will determine what is required and assist you in obtaining the necessary information for your lender.
A short-term, interim loan for financing the cost of construction that may convert to a longer-term loan after construction is complete. Typically, lender makes payments to the building contractors at periodic intervals as the work progresses.
An event or condition that if not met, will allow a party to a contract to terminate the transaction. For example, home purchase contracts often contain mortgage contingency clauses that allow the purchaser to terminate the contract if they are unable to obtain a mortgage to purchase the property. It is important that any contingency is negotiated carefully to avoid confusion as to when a contingency clause can be exercised.
A written agreement for the purchase/sale, exchange, or other conveyance of real estate between parties.
Refers to home loans other than government loans (VA and FHA).
An adjustable rate mortgage that allows the borrower to change the adjustable rate mortgage to a fixed rate mortgage within a specified time period.
A tax imposed on the transfer of real property.
A type of multiple ownership in which the residents of a multi-unit housing complex own shares in a cooperative corporation which grants them the right to occupy a specific unit or apartment. The ownership of the shares is considered personal property, not real property.
A report outlining the credit history of an individual which includes current and previous debts, payment amounts, late payments and past due amounts and other related information, including judgments and liens.
