Orange County NY Real Estate: Buyers Glossary

Settlement
Another name for closing.

Special Forbearance
A loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

Subordinate
To place in a rank of lesser importance or to make one claim secondary to another.

Survey
A property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc.

Sweat Equity
Using labor to build or improve a property as part of the down payment.

Title 1
an FHA-insured loan that allows a borrower to make non-luxury improvements (such as renovations or repairs) to their home; Title I loans less than $7,500 don't require a property lien.

Title insurance
Insurance that protects the lender against any claims that arise from arguments about ownership of the property; also available for homebuyers.

Title Search
A check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property.

Truth-in-Lending
A federal law obligating a lender to give full written disclosure of all fees, terms, and conditions associated with the loan initial period and then adjusts to another rate that lasts for the term of the loan.

Truth-in-Lending
A federal law obligating a lender to give fuII written disclosure of aII fees, terms, and conditions associated with the loan initial period and then adjusts to another rate that lasts for the term of the loan.

Underwriting

The process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower's credit history and a judgment of the property value.

VA
Department of Veterans Affairs: a federal agency which guarantees loans made to veterans; similar to mortgage insurance, a loan guarantee protects lenders against loss that may result from a borrower default.

Real Estate United Inc. 1197 Dolsontown Rd. Middletown, NY 10940 | NYS Licensed Real Estate Broker