| Cap
|
| A limit, such as that
placed on an adjustable rate mortgage,
on how much a monthly payment or
interest rate can increase or decrease.
|
| |
Cash reserves
|
| A cash amount sometimes
required to be held in reserve in
addition to the down payment and closing
costs; the amount is determined by the
lender. |
| |
Certificate of title |
| A document provided by a
qualified source (such as a title
company) that shows the property legally
belongs to the current owner; before the
title is transferred at closing, it
should be clear and free of all liens or
other claims. |
| |
Closing |
| Also known as
settlement, this is the time at which
the property is formally sold and
transferred from the seller to the
buyer; it is at this time that the
borrower takes on the loan obligation,
pays all closing costs, and receives
title from the seller. |
| |
Closing Costs
|
| Customary costs above
and beyond the sale price of the
property that must be paid to cover the
transfer of ownership at closing; these
costs generally vary by geographic
location and are typically detailed to
the borrower after submission of a loan
application. |
| |
Commission
|
| An amount, usually a
percentage of the property sales price,
that is collected by a real estate
professional as a fee for negotiating
the transaction. |
| |
Condominium
|
| A form of ownership in
which individuals purchase and own a
unit of housing in a multi-unit complex;
the owner also shares financial
responsibility for common areas. |
| |
Conventional loan |
| A private sector loan,
one that is not guaranteed or insured by
the U.S. government. |
| |
Cooperative (Co-op) |
| residents purchase stock
in a cooperative corporation that owns a
structure; each stockholder is then
entitled to live in a specific unit of
the structure and is responsible for
paying a portion of the loan. |
| |
Credit History
|
| History of an
individual's debt payment; lenders use
this information to gauge a potential
borrower's ability to repay a loan. |
| |
Credit Report |
| A record that lists all
past and present debts and the
timeliness of their repayment; it
documents an individual's credit
history. |
| |
Credit
bureau score |
| a number representing
the possibility a borrower may default;
it is based upon credit history and is
used to determine ability to qualify for
a mortgage loan. |
