Buyer's Information

• Cap: The maximum amount an interest rate or monthly payment can change, either at adjustment time or over the life of the mortgage.
• Closing: The final step in the sale and transfer of ownership of a property. The title is transferred from the seller to the buyer; the buyer signs the mortgage and pays costs of settlement; any money due the seller and purchaser are paid.
• Closing costs: Fees and expenses, not including the price of the home, payable by the seller and the buyer at the closing (e.g., brokerage commissions, title insurance premiums, and inspection, appraisal, recording, and attorney’s fees).
• Closing Statement: A financial statement rendered to the buyer and seller at the time of transfer of ownership, giving an account of all funds received or expended.
• Cloud on the title: Any condition which affects the clear title to real property.
• Commercial bank: A financial institution authorized to provide a variety of financial services, including consumer and business loans (generally short-term), checking services, credit cards, and savings accounts.
• Comparables: Properties similar in size and character to the one being bought or sold.
• Condominium: Ownership of a unit only, rather than of the entire building with the land.
• Consideration: Anything of value to induce another to enter into a contract (i.e. money, services, a promise).
• Contingency: A condition that must be satisfied before a contract is binding.
• Contract: An agreement to do or not to do a certain thing.
• Conventional mortgage: A fixed rate, fixed-term mortgage not insured by the federal government.
• Deed: A legal document conveying title to a property.
• Deed (quit claim): A deed that transfers only that title or right to a property that the holder of that title has at the time of the transfer. It does not warrant or guarantee a clear title.
• Department of Housing and Urban Development (HUD): A U.S. Government agency established to implement certain federal housing and community development programs.
• Disclosure laws: State and federal regulations which require sellers to disclose such conditions as whether a house is located in a flood plain or whether there are known defects in or affecting the property.