Abstract of Title:
A summary of the public records relating to the ownership of a particular piece of land. It represents a short legal history of an individual piece of property and traces the ownership of that property from the time of the first recorded transfer to present
Adjustable-rate Mortgage (ARM):
A mortgage that allows the interest rate to be changed periodically
Agency:
A legal relationship in which an owner-principal engages a broker-agent in the sale of property or a buyer-principal engages a broker-agent in the purchase of property
American Society of Home Inspectors (ASH):
A professional trade association that provides training and education in home inspections. Members must meet qualification requirements to join
Amortization:
The gradual repayment of a mortgage by periodic installments
Annual Percentage Rate (APR):
The total finance charge (interest, loan fees, points) expressed as a percentage of the mortgage amount
Apraisal:
An evaluation of a piece of property to determine its value
Asbestos:
A mineral fiber used in some building materials such as flooring, siding, insulation and roofing. It is presently banned for most uses in real property
Assumption of Mortgage:
An agreement whereby the buyer assumes responsibility for a mortgage owed by the seller; the seller remains liable to the lender unless the lender agrees to release the seller from the liability
Balloon Mortgage:
A mortgage where the amount financed is not fully amortized over the period of the loan. When the loan becomes due, a large sum or "balloon" payment is required to satisfy the mortgage
Bridge Loan
A short-term mortgage made until a longer-term loan can be made; it's sometimes used when a person needs money to build or purchase a home before the present one has been sold
Broker:
A person licensed by a state real estate commission to act independently in conducting a real estate brokerage business. Although requirements vary from state to state, an individual must usually have at least one year of experience in the industry and pass an examination to earn a broker's license
Building Codes:
State and local laws that regulate the construction of new property and the rehabilitation of existing property
Cap:
The maximum amount an interest rate or monthly payment can change, either at adjustment or existing 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 trasnfered from the seller to the buyer; the buyer signs the mortgage and pays costs of settlement; and 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)
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 account
Comparable:
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
Contingency:
A condition that must be satisfied before a contract is binding
Conventional Mortgage:
A fixed rate, fixed-term mortgage not insured by the federal government
Deed:
A legal document conveying title to a property
Deed (quietclaim):
A did 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
Earnest Money:
A portion of a down payment given to the seller by a potential buyer indicating the buyer's intent to complete the purchase of the property
Encroachment:
A condition that exists when a permanent structure encroaches or lies across a property line or beyond the allowed buildable area of property
Encumbrance:
Any condition that limits the interest in a title to property such as a mortgage, deed restrictions, easements, unpaid taxes, etc.
Equity Mortgage:
A mortgage based on the borrowers' equity in their home rather that on their credit worthiness
Escrow:
The placement of money or documents with a third party for safekeeping pending the fulfillment or performance of a specified act or condition
Federal Housing Administration (FHA):
An agency within the Department of Housing and Urban Development (HUD) that administers loan guarantee programs and loan insurance programs to make more housing available
Graduated-Payment Mortgage:
A mortgage that starts with low monthly payments and increases at a predetermined rate
Growing-Equity Mortgage:
A mortgage loan in which the monthly payments increase by a specific amount each year with the "overpayments" applied to the principal
Installment Debts:
Long-term debts that usually extend for more that one month
Lien:
A legal claim against a property that must be paid when the property is sold
Loan-to-value Ratio:
The relationship between the amount of a home mortgage and the total value of the property. Lenders may limit their maximum mortgage to between 80 and 95 percent of value
Lock-in-rate:
A commitment made by lenders on a mortgage loan to "lock-in" a civilian rate pending mortgage approval. Lock-in periods vary
Market Value:
The highest price a buyer will pay for a property and lowest price the seller will accept
Mortgage Broker:
An individual or company that obtains mortgages for others by finding lending institutions, insurance companies or private sources to lend the money; may also make collections and handle disbursements
Negative Amortization:
An increase in the outstanding balance or a mortgage resulting from the failure of periodic debt service payments to cover required interest charges on the loan
Points:
A dollar amount paid to a lender as a consideration for making the mortgage. A point is 1 percent of the loan amount; also called discount points
Principal, Interest, Taxes and Insurance (PITI) Payment:
A periodic (typically monthly) payment that includes the principal and interest payment plus a contribution to the escrow account established by the lender to pay insurance premium and property taxes on the mortgaged property
Private Mortgage Insurance (PMI):
insurance issued to a lender by a private company to protect the lender against loss on a defaulted mortgage loan. Its use is usually limited to loans with high loan-to-value ratios. The borrower pays the premium
Radon:
A colorless, odorless gas formed by the breakdown of uranium in subsoils. It can enter a house through cracks in the foundation or in water and is considered to ge a health hazard
REALTOR and REALTOR-Associate:
Registered collective membership marks that identify real estate professionals who are members of the National Association of REALTORs and who subscribe to its strict Code of Ethics
Savings and Loan Association (S&Ls):
Depository institutions that specialize in originating, servicing and holding mortgage loans, primarily on owner-occupied residential property
Savings Bank:
A financial institution organized to hold depositers' funds in interest-bearing accounts and to make long-term investments, such as home mortgage loans
Shared Equity Mortgage:
A home loan in which an investor is granted a share of the equity, thereby allowing the investor to participate in the proceeds from resale
Title:
A document that provides evidence or ownership
Title Defect:
An outstanding claim or encumberance on property that affects marketability
Title Insurance:
Protection for lenders and homeowners against financial loss resulting from legal defects in the title
Veterans Administration (VA):
A government agency that provides services for eligible veterans of the armed forces. Among other programs, it guarantees mortgage loans are made by private lenders to veterans
Variance:
A special suspension of zoning laws to allow the use of property in a manner not in accord with existing laws
Zoning Restrictions:
Local municipal ordinances that classify property according to specific uses (single family, residential, commercial, industrial, multi-family, etc.)
Show Low Office Randolph Tenney, Broker 60 South White Mountain Rd. Show Low, Arizona 85901 Office: (928) 532-1111 Toll Free: (800) 237-6230 Email: info@gmactenney.com |
Pinetop/Lakeside Office Mark Rodenborn, Branch Manager 1413 E. White Mountain Blvd. Pinetop, Arizona 85935 Office: (928) 367-3100 Toll Free: (800) 422-6812 Email: info@gmactenney.com |
Snowflake/Taylor Office Troy Goodwin, Manager 1300 S. Main St. Snowflake, Arizona 85937 Office: (928) 536-5600 Toll Free: (866) 297-0143 Email: info@gmactenney.com |
Holbrook Office Yvonne Larson, Branch Manager 1100 W. Hopi Dr. Holbrook, Arizona 86025 Office: (928) 241-1229 Email: info@gmactenney.com |