First Time Home Buyer’s Dictionary

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First Time Home Buyer's Dictionary

First Time Home Buyer's Dictionary

  • AMORTIZATION SCHEDULE : A schedule showing the principal and interest payments throughout the life of the loan.
  • APPRAISED VALUE : An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc. of the property and surroundings.
  • ASSUMPTION TRANSFER FEE : A fee assessed by the lender to the buyer to assume the present loan.
  • CREDIT REPORT : A report on the past ability of a loan applicant to installment payments.
  • DOCUMENT PREPARATION : A charge by an attorney for preparing legal documents for transaction.
  • ESCROW FEE : A fee charged by the title company to service the transaction, to escrow monies, and cover documents. The amount varies with company; usually split between buyer and seller.
  • ESCROW / IMPOUND ACCOUNT : Funds held by the lender for payment of taxes and insurance when due. Usually does not include maintenance fees.
  • HOMEOWNER’S INSURANCE : Protects the property and contents in case of loss; must be for at least the loan amount or for 80% of the value of improvements, whichever is greater. Click Here to learn more about Homeowner’s Insurance
  • INSPECTIONS : An examination of property for various reasons such as termite inspections; inspection to see if required repairs were made before funds are received, etc.
  • INTEREST : Cost of loan funds, Always paid in arrears.
  • LOAN APPLICATION FEE : Paid to the lender at time of application; check with lender for amount.
  • LOAN DISCOUNT : The points a lender charges; may be paid by either buyer or seller on conventional loans; number of points fluctuates with mortgage money market.
  • MAINTENANCE FEE : Charged by the homeowner’s assoaciation as set out in subdivision restrictions.
  • MORTGAGEE’S TITLE POLICY : Required by the lender to insure that the lender has a valid lien; does not protect the buyer
  • ORIGINATION FEE : A fee the buyer pays the lender to originate a new loan.
  • OWNER’S TITLE POLICY : Insures that the buyer has title to the property.
  • POINTS : 1% of loan amount
  • PREPAYMENT PENALTY : Charged by the lender for premature payment of a loan balance.
  • PRIVATE MORTGAGE INSURANCE : Insurance against a loss by a lender (mortgagee) in the event of default by a borrower (mortgagor).
  • REALTOR FEES : An amount paid to the realtor as compensation for his/her services.
  • RECORDING FEES : Charged by the County Clerk to record documents in the public records.
  • RESTRICTIONS : Certified copy of deed restrictions required by lender.
  • SURVEY : Confirms lot size and any encroachments or restriction violations.
  • TAX PRORATION : Seller pays buyer’s taxes from January 1 to closing.
  • TAX CERTIFICATES : Certificates issued by taxing authorities showing the current years’s taxes, the last year taxes were paid, and any delinquencies to be collected at closing.

If you would like to speak with a REALTOR contact Hunter Webb at HunterWebb@verizon.net or call at 469-951-2299

You can also speak to a REALTOR online by going to our Ask A REALTOR page
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First Time Home Buyer’s Dictionary

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