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Las Vegas Real Estate |
Las
Vegas Real Estate Glossary
Acceleration Clause
A provision in a mortgage that gives
the lender the right to demand payment of the entire principal balance
if a monthly payment is missed.
Acceptance
An offeree's consent to enter into
a contract and be bound by the terms of the offer.
Additional Principal Payment
A payment by a borrower of more
than the scheduled principal amount due in order to reduce the remaining
balance on the loan.
Adjustable-Rate Mortgage (ARM)
A mortgage that permits the lender
to adjust its interest rate periodically on the basis of changes in a specified
index.
Adjusted Basis
The original cost of a property
plus the value of any capital expenditures for improvements to the property
minus any depreciation taken.
Adjustment Date
The date on which the interest rate
changes for an adjustable-rate mortgage (ARM).
Adjustment Period
The period that elapses between
the adjustment dates for an adjustable-rate mortgage (ARM).
Administrator
A person appointed by a probate
court to administer the estate of a person who died intestate.
Affidavits
As part of the closing process,
you're likely to sign numerous affidavits. You may be required, for example,
to sign an affidavit of occupancy. It states that you will use the property
as a principal residence. Or, you and the seller may have to sign an affidavit
stating all of the improvements to the property required in the sales contract
were completed before closing.
Your lender can provide additional
information regarding any of these documents you will sign.
Affordability Analysis
A detailed analysis of your ability
to afford the purchase of a home. An affordability analysis takes into
consideration your income, liabilities, and available funds, along with
the type of mortgage you plan to use, the area where you want to purchase
a home, and the closing costs that you might expect to pay.
Amenity
A feature of real property that
enhances its attractiveness and increases the occupant's or user's satisfaction
although the feature is not essential to the property's use. Natural amenities
include a pleasant or desirable location near water, scenic views of the
surrounding area, etc. Human-made amenities include swimming pools, tennis
courts, community buildings, and other recreational facilities.
Amortization
The gradual repayment of a mortgage
loan by installments.
Amortization Schedule
A timetable for payment of a mortgage
loan. An amortization schedule shows the amount of each payment applied
to interest and principal and shows the remaining balance after each payment
is made.
Amortization Term
The amount of time required to amortize
the mortgage loan. The amortization term is expressed as a number of months.
For example, for a 30-year fixed-rate mortgage, the amortization term is
360 months.
Amortize
To repay a mortgage with regular
payments that cover both principal and interest.
Annual Mortgagor Statement
A report sent to the mortgagor each
year. The report shows how much was paid in taxes and interest during the
year, as well as the remaining mortgage loan balance at the end of the
year.
Annual Percentage Rate (APR)
The cost of a mortgage stated as
a yearly rate; includes such items as interest, mortgage insurance, and
loan origination fee (points).
Annuity
An amount paid yearly or at other
regular intervals, often on a guaranteed dollar basis.
Application
A form used to apply for a mortgage
loan and to record pertinent information concerning a prospective mortgagor
and the proposed security.
Loan Application The loan application is a detailed form designed to provide information from you that your lender will need. Lenders use the application to evaluate whether or not they can give you a loan, and if so, the amount of money they can lend you. The "four Cs" of credit come into play when filling out an application -- they are capacity, credit history, capital and collateral.
The loan application form requests
information such as:
- bank account balances and account
numbers, as well as bank branch address
- information about where you work
or what sources of income you have
- outstanding debts (including loans
and credit cards with names and
addresses of creditors)
Information needed for the loan application may vary from lender to lender, so prior to filling out the application it's important to discuss with your lender what items your lender will need.
Appraisal
A written analysis of the estimated
value of a property prepared by a qualified appraiser. Contrast with home
inspection.
An appraiser is a person who is qualified
by education, training, and experience to estimate the value of real and
personal property. Appraisers usually charge one fee for a single-family
home and slightly higher fees for a two-family, three-family, or four-family
home. When working with a Fannie Mae-approved lender who uses Desktop Underwriter®
– our advanced automated underwriting system - some costs
associated with your closing, such as your appraisal, may be reduced. The
"appraised value" is a term used to define the home's fair market value
and is based on the appraiser's knowledge, experience, and analysis of
the property.
Appraised Value
An opinion of a property's fair
market value, based on an appraiser's knowledge, experience, and analysis
of the property.
Appraiser
A person qualified by education,
training, and experience to estimate the value of real property and personal
property.
Appreciation
An increase in the value of a property
due to changes in market conditions or other causes. The opposite of depreciation.
Assessed Value
The valuation placed on property
by a public tax assessor for purposes of taxation.
Assessment
The process of placing a value on
property for the strict purpose of taxation. May also refer to a levy against
property for a special purpose, such as a sewer assessment.
Assessment Rolls
The public record of taxable property.
Assessor
A public official who establishes
the value of a property for taxation purposes.
Asset
Anything of monetary value that
is owned by a person. Assets include real property, personal property,
and enforceable claims against others (including bank accounts, stocks,
mutual funds, and so on).
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).
Assignment
The transfer of a mortgage from
one person to another.
Assumable Mortgage
A mortgage that can be taken over
("assumed") by the buyer when a home is sold.
An assumable mortgage is taken over -- or assumed -- by a home buyer when a home is sold. In most cases, the lender must approve the assumption.
A provision in an assumable mortgage allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon the sale or transfer of the property.
An assumption fee is usually paid to the lender -- usually by the purchaser of the property -- after the assumption of an existing mortgage. You may wish to evaluate the terms and conditions of an assumable mortgage to see if they are more competitive than the terms and conditions of a new mortgage offered by a lender.
Assumption
The transfer of the seller´s
existing mortgage to the buyer. See assumable mortgage.
Assumption Clause
A provision in an assumable mortgage
that allows a buyer to assume responsibility for the mortgage from the
seller. The loan does not need to be paid in full by the original borrower
upon sale or transfer of the property.
Assumption Fee
The fee paid to a lender (usually
by the purchaser of real property) resulting from the assumption of an
existing mortgage.
The assumption fee is the amount paid to a lender resulting from a buyer taking over the payments on a seller´s existing loan. The purchaser of the property usually pays this fee.
Buyers pay an assumption fee when they take over the payments on a seller's existing loan. Your Fannie Mae-approved lender can provide further details on assumable mortgage options.
A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller is called an assumption clause.
Attorney-in-fact
One who holds a power of attorney
from another to execute documents on behalf of the grantor of the power.
Automated Underwriting
After you complete your loan application
with a lender, it is sent to "underwriting" for review. In short, underwriting
is the process used to analyze how you have managed credit obligations
in the past, whether you have the ability to repay the mortgage loan you
are applying for (i.e., your income and assets), and whether the price
you are willing to pay for the home is supported by the price of the property.
In the past, underwriting was done manually. An underwriter would review the information, examine the data, and offer an underwriting answer. The process typically took between 30 and 60 days.
Many lenders now use computer-based,
automated underwriting systems, including an innovative Desktop Underwriter®
system. Desktop Underwriter provides the lender with immediate access to
information required for the underwriting process. It then analyzes the
pertinent information and provides a recommendation to the lender as to
whether the application should be approved, thereby removing the possibility
of any bias.
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