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credit utilization

Define: credit utilization Definition: Credit utilization is the comparison between the amount of credit available and the amount currently used.

appraisal

Define: appraisal Definition: An appraisal is an estimation of a property's value.

quitclaim

Define: quitclaim (deed) Definition: A quitclaim deed can be used to transfer property rights. It releases a person's interest in a... read more →

decree

Define: decree Definition: A decree of foreclosure and sale is a declaration made by the court stating that a piece of... read more →

median (number)

Define: median Definition: The median number is the middle number in a set of numbers. The area median income is produced... read more →

secondary residence

Define: secondary residence Definition: A secondary residence is a property in which the owner(s) lives in part of the time.

grace period

Define: grace period Definition: A grace period is the period of time after the deadline for a mortgage payment, during which... read more →

primary residence

Define: primary residence Definition: A primary residence is the legal residence of a person. A person may only have one primary... read more →

deduction

Define: deduction Definition: A deduction is a charitable gift, mortgage interest paid on a loan on a primary residence, business expenses,... read more →

arm’s length transaction

Define: arm's length transaction Definition: An arm's length transaction takes place between two parties without an obvious connection to one another,... read more →

non-arms length transaction

Define: non-arms length transaction Definition: A non-arms length transaction is that which takes place between two parties that know each other, such... read more →

renegotiate

Define: renegotiate Definition: To renegotiate a mortgage means to work with your lender to rework your loan terms so that it... read more →

secure (financing)

Define: secure (financing) Definition: To secure financing for a property is to both successfully apply and qualify for a mortgage loan.

Fair Housing Act

Define: Fair Housing Act Definition: The Fair Housing Act was signed in 1968 by President Lyndon Johnson. It prohibits home sellers... read more →

fair lending

Define: fair lending Definition: Fair lending is the practice outlined in the Fair Housing Act of 1968. It prohibits lenders from... read more →

bankrupt

Define: bankrupt Definition: To be bankrupt means that one's outstanding debts are being restructured in order to pay back your creditors.

bankruptcy

Define: bankruptcy Definition: Bankruptcy is the state of working through debt with the help of your bank or the government,... read more →

forbearance

Define: forbearance Definition: Forbearance is an option given to borrowers who are experiencing difficulty making their mortgage payments. It involves the... read more →

mortgage

Define: mortgage Definition: A mortgage is a loan that borrowers take out in order to purchase a home.

borrower

Define borrower Definition: A borrower is someone who works with a lender to secure financial assistance in purchasing or refinancing a... read more →

Refinance (home loan)

Definition: refinance (home loan) Getting a new mortgage to replace the original one is known as refinancing, and is done... read more →

income

Definition: income Income is the money received, on a regular basis, for work performed.

creditworthiness

Definition: creditworthiness Creditworthiness is the valuations of borrowers by lenders that determines the possibility a borrower may default on their... read more →

asset

Definition: asset An asset is a property owned by a person that is regarded to have value and can meet... read more →

loan application

Definition: loan application A loan application is a document the provides information, financial and otherwise, about the borrow that lenders... read more →

lender

Definition: lender A lender is any organization, individual, or public group that makes funds available with the stipulation that the... read more →

mortgage rate lock

Definition: mortgage rate lock A mortgage rate lock is an agreement between the borrower and lender that allows the borrower... read more →

rental property

Definition: rental property A rental property is a property which the owner receives payment from tenants in return for using... read more →

rent

Definition: rent (verb) To pay someone for the use of something or occupancy of somewhere.

property tax

Definition: property tax A property tax is a levy on the value of the property by government authority.

buyer (home)

Definition: (home) buyer A home buyer is a person who is looking to purchase a new home.

zoning laws

Definition: zoning Zoning is the regulation of the use of real estate property by local government, restricting property to residential,... read more →

condo

Definition: condo Short for condominium, a condo is on of a group of housing units, in which each homeowner has... read more →

Seller

Definition: (home) seller A (home) seller is the person who puts a home on the market for sale.

What does HUD stand for?

Definition: HUD The United States Department of Housing and Urban Development, otherwise known as the HUD, is a Cabinet department... read more →

Property address

Definition: property address The property address is a way to define or pinpoint where a piece of property is located.

What are processing fees?

Definition: processing fee A processing fee is a fee charged to process a loan application, including applications for credit checks,... read more →

Principal balance

Definition: principal balance The principal balance is an amount owed in order to satisfy the payoff of the underlying obligation,... read more →

Pre-qualification

Definition: pre-qualification Pre-qualification is the initial evaluation of credit worthiness of a potential borrower that is used to determine the... read more →