New Mexico Mortgage Loans

Mortgage & Real Estate

A•B•C•D•E•F•G•H•I•J•K•L•M

A

ABSORPTION RATE
The ratio of the number of properties in an area that have been sold against the number available. Used to show the volatility of a market.

ABSTRACT (of title)
A written summary of the title history of a particular piece of real estate.

ABSTRACTION METHOD
This method of estimating the value of property uses similar properties available in the same market to extract the value of a parcel of land.

ACCELERATION CLAUSE
A provision in a mortgage or note that gives the lender the right to demand immediate payment of the outstanding loan balance under certain circumstances. Usually when the borrower defaults on the loan.

ACCESSORY BUILDING
A building separate from the main structure on a property. Often used for a specific purpose, such as a workshop, storage shed or garage.

ACCRETION
The natural growth of a piece of land resulting from forces of nature

ACRE
A measurement of area: 43,560 square feet.

ACTUAL AGE (also refered to as EFFECTIVE AGE)
The amount of time that has passed since a building or other structure was built.

ADJUSTMENT DATE
The date the interest rate changes on an adjustable rate mortgage.

AD VAL OREM TAX
Taxes assessed based on the value of the land and improvements

ADDENDUM
A supplement to any document that contains additional information pertinent to the subject. Appraisers often use an addendum to further explain items for which there was inadequate space on the standard appraisal form.

ADJUSTED SALES PRICE
An opinion of a property's sales price, after adjustments have been made to account for differences between it and another comparable property.

AESTHETIC VALUE
The additional value a property holds based on subjective criteria such as look or appeal.

AFFIRMATION
A declaration that a certain set of facts are truthful.

AFFORDABILITY ANALYSIS
A calculation used to determine an individual's likelihood of being able to meet the obligations of a mortgage for a particular property. Considerations include the down payment, closing costs and on-going mortgage payments.

AGENT
A person who has been appointed to act on behalf of another for a particular transaction.

AMENITY
Any feature of a property that increases its value or desirability. These might include natural amenities such as location or proximity to mountains, or man-made amenities like swimming pools, patios, hot-tubs, parks or other nearby recreation.

AMERICAN SOCIETY OF APPRAISERS
An organization of appraisal professionals and others interested in the appraisal profession.

ARM (Adjustable Rate Mortgage)
A type of mortgage in which the interest rate is adjusted periodically, based on the movement of a financial index, normally the prime lending rate.

AMORTIZATION
Repayment of loan by regular periodic (installment) payments. As the payments are made, the debt is reduced so that at the end of fixed period or term, no money will be owed.

AMORTIZATION SCHEDULE
The breakdown of individual payments throughout the life of an amortized loan, showing both principal contribution and debt service (interest) fees.

AMORTIZATION TERM
The length of time over which an amortized loan is repaid. Mortgages are commonly amortized over 15 or 30 years.

AMPERAGE
A measure of electric current describing the magnitude.

ANNUITY
A sum of money paid at regular intervals, often annually.

APPLICATION
A form used to apply for a mortgage loan that details a potential borrower's income, debt, savings and other information used to determine credit worthiness.

APPRAISAL
A report made by a qualified person as to the value of a property as of a given date. An appraisal is a ''defensible'' and carefully documented opinion of value. Most commonly derived using recent sales of comparable properties by a licensed, professional appraiser.

APPRAISAL FOUNDATION
A not-for-profit educational organization established by the appraisal profession in the United States in 1987. It is dedicated to the advancement of professional valuation and responsible for establishing, improving, and promoting the Uniform Standards of Professional Appraisal Practice (USPAP).

APPRAISAL INSTITUTE
A world-wide organization dedicated to real estate appraisal education, publication and advocacy.

APPRAISAL PRINCIPLES
The basic building blocks of the property valuation process, including property inspection, market analysis and basic economics.

APPRAISAL REPORT
The end result of the appraisal process, usually consists of one major, standardized form such as the Uniform Residential Appraisal Report form 1004, as well as all supporting documentation and additional detail information. The purpose of the report is to convey the opinion of value of the subject property and support that opinion with corroborating information.

APPRAISAL STANDARDS BOARD (ASB)
An independent board of the APPRAISAL FOUNDATION, which writes, amends, and interprets USPAP. The ASB is composed of up to seven appraisers appointed by the Foundation's Board of Trustees. The ASB holds public meetings throughout the year to interpret and amend USPAP.

APPRAISED VALUE
An opinion of the fair market value of a property as developed by a licensed, certified appraiser following accepted appraisal principals.

APPRAISER
An educated, certified professional with extensive knowledge of real estate markets, values and practices. The appraiser is often the only independent voice in any real estate transaction with no vested interest in the ultimate value or sales price of the property.

APPRECIATION
The natural rise in property value due to market forces.

(APR) ANNUAL PERCENTAGE RATE
The rate of annual interest charged on a loan. APRrefers to the total cost of the loan, expressed as a yearly rate.

APPLICATION FEE
That part of the closing costs pre-paid to the lender at time of application to cover initial expenses.

ARMS LENGTH TRANSACTION
Any transaction in which the two parties are unconnected and have no overt common interests. Such a transaction most often reflects the true market value of a property.

ASSESSED VALUE
The value of a property according to jurisdictional tax assessment. The value placed on a piece of real estate by the taxing authority for the purpose of taxation. Also called an assessment.

ASSESSMENT
The function of assigning a value to a property for the purpose of levying taxes.

ASSESSMENT RATIO
The comparative relationship of a property's assessed value to its market value.

ASSESSOR
The jurisdictional official who performs the assessment and assigns the value of a property.

ASSET
Any item of value which a person owns.

ASSIGNMENT
Transfer of ownership of a mortgage - usually when the loan is sold to another company.

ASSUMABLE MORTGAGE
A mortgage that can be taken over by the buyer when a home is sold.

ASSUMPTION OF MORTGAGE
When a buyer takes over, or "assumes" the sellers mortgage. The purchaser takes over mortgage payments for the balance of the loan, assuming primary liability. Unless specifically released by the lender, the seller remains secondarily liable.

ATTACHED HOUSING
Any number of houses or other dwellings which are physically attached to one another, but are occupied by a number of different people. The individual houses may or may not be owned by separate people as well.


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B

BACKFILL
The slope of the ground around a house.

BALLOON MORTGAGE
A mortgage loan in which the monthly payments are not large enough to repay the loan by the end of the term. The outstanding balance of the mortgage is due in a lump sum at the end of the term.

BALLOON PAYMENT
The final large payment at the end of a balloon mortgage term.

BANKRUPTCY
When a person or business is unable to pay their debts and seeks protection of the state against creditors. Bankruptcies remain on credit records for up to ten years and can prevent a person from being able to get a loan.

BILL OF SALE
A physical receipt indicating the sale of property.

BIWEEKLY MORTGAGE
A mortgage where you make "half payments" every two weeks, rather than one payment per month. This results in making the equivalent of 13 monthly payments per year, rather than 12, significantly reducing the time it takes to pay off a thirty year mortgage.

BONA FIDE
Any genuine offer, made without intent to defraud or deceive.

BRIDGE FINANCING/LOAN
An interim loan made to facilitate the purchase of a new home before the buyer's current residence sells and its equity is available to fund the new purchase. The short-term loan is secured by the equity in an as-yet-unsold house, with the funds to be used for a down payment and/or closing costs on a new house. There is no payment of principal until the house is sold or the end of the loan term, whichever comes first. Interest payments may or may not be deferred until the house is sold.

BRIDGING
Structural members used between beams to strengthen the structure.

BROKER
An individual who facilitates the purchase of property by bringing together a buyer and a seller. For a commission or a fee, the broker brings parties together and assists in negotiating contracts between them.

BTU
British Thermal Unit. A unit of measurement used to describe heating or cooling capacity.

BUFFER ZONE
A segment of land between two disparate municipal zones which acts as a shield to keep one zone from encroaching upon the other. Often used to separate residential districts from commercial areas.

BUILDING CODE
Regulations that ensure the safety and material compliance of new construction within a municipality. Building codes are localized to ensure they are adequate to meet the risk of common hazards.

BUILDING LINE OR SETBACK
The statutory distance between buildings and the property line, imposed by municipalities, home associations, or other agreements.

BUILT-INS
Specific items of personal property which are installed in a real estate improvement such that they become part of the building. Built-in microwave ovens and dishwashers are common examples.

BUNGALOW
A one-story, home-style dating from the early twentieth century. Often characterized by a low-pitched roof.

BUY DOWN
Money advanced by an individual (e.g. builder, seller, buyer, lender, developer) to lower monthly mortgage payments for a few years or the whole term. The extra money paid in a lump sum to reduce the interest rate of a fixed rate mortgage for a period of time. The extra money may be paid by the borrower, in order to have a lower payment at the beginning of the mortgage. Or paid by the seller, or lender, as incentive to buy the property or take on the mortgage.


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C

CALL OPTION
A clause in a mortgage which allows the lender to demand payment of the outstanding balance at a specific time.

CAP
Associated with Adjustable Rate Mortgages. A limit on how high monthly payments or how much interest rates may change within a certain time period or the life of the mortgage.
     CAP (interest rate) The maximum interest rate increase allowable on an adjustable rate mortgage. Does not result in negative amortization. Also see Negative amortization.
     CAP (payment rate) The maximum payment amount increase allowable on an adjustable rate mortgage. May result in negative amortization. Also see Negative amortization.

CAPITAL
Accumulated goods and money which is most often used to generate additional income.

CAPITAL EXPENDITURE
An outlay of funds designed to improve the income-producing capabilities of an asset or to extend its economic life.

CASH-OUT REFINANCE
Refinancing a mortgage at a higher amount than the current balance in order to transform a portion of the equity into cash.

CAVEAT EMPTOR
Literally translated: ''Let the buyer beware.'' A common business tenet whereby the buyer is responsible for verifying any and all claims by the seller of property.

CERTIFICATE OF DEPOSIT
A document showing that the bearer has a certain amount of money, at a particular amount interest, on deposit with a financial institution.

CERTIFICATE OF DEPOSIT INDEX
An index based on the interest rate of six month CD's. Used to set interest rates on some Adjustable Rate Mortgages.

CERTIFICATE OF ELIGIBILITY
A document issued by the Veterans Administration that certifies eligibility for a VA loan.

CERTIFICATE OF OCCUPANCY
Issued by an appropriate jurisdictional entity, this document certifies that a building complies with all building codes and is safe for use or habitation.

CERTIFICATE OF REASONABLE VALUE (CRV)
Usually based on an independent appraisal, a CRV for a particular property establishes the maximum amount which can be secured by a VA mortgage.

CERTIFICATE OF TITLE
A document designating the legal owner of a parcel of real estate. The statement shows ownership of property, stating that the seller has clear legal title. Usually provided by a title or abstract company.

CERTIFIED GENERAL APPRAISER
Generally, any professional who has met the local or state requirements, and passed the appropriate certification exam, and is capable of appraising any type of property.

CERTIFIED RESIDENTIAL APPRAISER
A sub-classification of appraiser who is only licensed to appraise residential property, usually up to four units.

CHAIN OF TITLE
The complete history of ownership of a piece of property.

CHATTEL
Any personal property which is not attached to or an integral part of a property. Chattel is not commonly taken into consideration when appraising the value of real property.

CLEAR TITLE
Ownership of property that is not encumbered by any counter-claim or lien.

CLOSING
The concluding day of the real estate transaction, when title and deed pass from seller to buyer, the buyer signs the mortgage and pays the purchase price and closing costs. More commonly known as a torturous process designed to induce cramping in a home buyer's hands by requiring signature on countless pieces of documentation that seem to never end.

CLOSING COSTS
All appropriate costs generated by the sale of property which the parties must pay to complete the transaction. Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Costs may include appraisal fees, origination fees, title insurance, taxes and any points negotiated in the deal. Also refered to as "settlement costs."

CLOSING STATEMENT
A financial disclosure giving an account of all funds received and expected at closing, including the escrow deposit for taxes, hazard insurance and mortgage insurance for the escrow account. The document detailing the final financial arrangement between a buyer and seller and the costs paid by each.

CO-BORROWER
A second person sharing obligation on the loan and title on the property.

COLLATERAL
An asset which is placed at risk to secure the repayment of a loan.

COLLECTION
The process a lender takes to pursue a borrower who is delinquent on his payments in order to bring the mortgage current again. Includes documentation that may be used in foreclosure.

CO-MAKER
A second party who signs a loan, along with the borrower, and becomes liable for the debt should the borrower default.

COMMON LAW
As opposed to statute law. Laws that have been established by custom, usage and courts over many years.

COMMISSION
A percentage of the sales price or a fixed fee negotiated by an agent to compensate for the effort expended to sell or purchase property. An agent's or broker's fee for bringing the principals together and helping to negotiate a real estate transaction, often a percentage of the sales price or flat fee.

COMMITMENT
An agreement, frequently in writing, between a lender and a borrower to loan money at a future date, subject to certain conditions.

COMMON AREA ASSESSMENTS
Fees which are charged to the tenets or owners of properties to cover the costs of maintaining areas shared with other tenets or owners. Commonly found in condominium, PUD or office spaces.

COMMON AREAS
Any areas, such as entryways, foyers, pools, recreational facilities or the like, which are shared by the tenets or owners of property near by. Commonly found in condominium, PUD or office spaces.

COMMUNITY PROPERTY
In many jurisdictions, any property which has been acquired by a married couple. The ownership of the property is considered equal unless stipulated otherwise by both parties.

COMPARABLES
An abbreviated term used by appraisers to describe similar properties used for comparison purposes in the appraisal process. These properties will be reasonably the same size and location, with similar amenities and characteristics, so that the approximate fair market value of the subject property can be determined. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for determining a comparable property.

COMPOUND INTEREST
Interest paid on the principal amount, as well as any accumulated interest.

CONCESSIONS
Additional value granted by a buyer or seller to entice another party to complete a deal.

CONDEMNATION
The official process by which a property is deemed to be uninhabitable or unusable due to internal damage or other external conditions.

CONDENSATION
The transition of water vapor to liquid. Typically forms in areas of high humidity.

CONDOMINIUM
A development where individual units are owned, but common areas and amenities are shared equally by all owners. Individual will have ownership of a single unit in a multiunit building or complex of buildings. Along with this goes a share of ownership of the common areas.

CONDOMINIUM CONVERSION
Commonly, the conversion of a rental property such as an apartment complex into a CONDOMINIUM-style complex where each unit is owned rather than leased.

CONSTRUCTION LOAN
A loan made to a builder or home owner that finances the initial construction of a property, but is replaced by a traditional mortgage one the property is completed.

CONTIGUOUS
Connected to or touching along an unbroken boundary.

CONTINGENCY
A condition that must be met for a contract or a commitment to remain binding. Something that must occur before something else happens. Often used in real estate sales when a buyer must sell a current home before purchasing a new one. Or, when a buyer makes an offer the requires a complete home inspection before it becomes official.

CONTRACT
A legally binding agreement, oral or written, between two parties.

CONVENTIONAL MORTGAGE
A traditional, real estate financing mechanism that is not backed by any government or other agency. Any mortgage loan that is not insured by FHA, guaranteed by VA, of funded by a government authorized bond sale or grant.

CONVERTIBLE ARM
A mortgage that begins as and adjustable, that allows the borrower to convert the loan to a fixed rate within a specific timeframe.

CONVEY
To transfer real estate from one person to another.

COOPERATIVE (CO-OP)
A form of ownership where each resident of a multiunit property owns a share in a cooperative corporation that owns the building. With each resident having rights to a specific unit within the building.

CORPORATE RELOCATION
A situation where a person's employer pays all or some of the expenses associated with moving from one location to another, usually over a substantial distance. Relocation expenses often include the amounts, such as brokerage fees, incurred in the selling and buying of the employee's primary residence.

COST OF FUNDS INDEX (COFI)
An index of financial institutions costs used to set interest rates for some Adjustable Rate Mortgages.

COVENANT
A stipulation in any mortgage that, if not met, can be cause for the lender to foreclose.

CREDIT
A loan of money for the purchase of property, real or personal. Credit is either secured by an asset, such as a home, or unsecured.

CREDIT HISTORY
A record of debt payments, past and present. Used by mortgage lenders in determining credit worthiness of individuals.

CREDIT REPORT
The report to a prospective lender on the credit standing of a prospective borrower. A detailed report of an individuals credit, employment and residence history prepared by a credit bureau. Used by lenders to determine credit worthiness of individuals.

CREDIT REPOSITORY
Large companies that gather and store financial and credit information about individuals who apply for credit.

CREDITOR
A person to whom money is owed.

CUL-DE-SAC
A dead-end street. One with only one entrance/exit.


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D

DATE OF APPRAISAL
The specific point in time as of which an appraiser designates the value of a home. Often stipulated as the date of inspection.

DEBT
An obligation to repay some amount owed. This may or may not be monetary.

DEBT EQUITY RATIO
The ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the home. Equity is calculated at the fair-market value of the home, less any outstanding mortgage debt.

DEED
A legal written document by which title to property is transferred. The document indicates the ownership of a property.

DEED-IN-LIEU (OF FORECLOSURE)
A document given by a borrower to a lender, transferring title of the property. Often used to avoid credit-damaging foreclosure procedures.

DEED OF TRUST
A document which transfers title in a property to a trustee, who's obligations and powers are stipulated. Often used in mortgage transactions.

DEED OF RECONVEYANCE
A document which transfers ownership of a property from a Trustee back to a borrower who has fulfilled the obligations of a mortgage.

DEED OF RELEASE
A document which dismisses a lien or other claim on a property.

DEED OF SURRENDER
A document used to surrender any claim a person has to a property.

DEFAULT
The condition in which a borrower has failed to meet the obligations of a loan or mortgage. Failure to fulfill the terms as agreed to in the mortgage of note.

DELINQUENCY
The state in which a borrow has failed to meet payment obligations on time.

DEPOSIT
Cash given along with an offer to purchase property, Also called EARNEST MONEY.

DEPRECIATION
The natural decline in property value due to market forces or depletion of resources.

DETACHED SINGLE-FAMILY HOME
A single building improvement intended to serve as a home for one family.

DISCOUNT POINTS
Points paid in addition to the loan origination fee to get a lower interest rate. One point is equal to one percent of the loan amount.

DISTRESSED PROPERTY
A mortgaged property which has been foreclosed on.

DUE-ON-SALE PROVISION
A clause in a mortgage giving the lender the right to demand payment of the full balance when the borrower sells the propertyor if if the property changes hands.

DUPLEX
A single-building improvement which is divided and provides two units which serve as homes to two families.

DWELLING
A house or other building which serves as a home.

DOWN PAYMENT
An amount paid in cash for a property, with the intent to mortgage the remaining amount due. The difference between the sale price of a property and the mortgage amount.


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E

EARNEST MONEY DEPOSIT
The deposit money given to seller or his agent by the potential buyer at the time of the purchase offer. If the offer is accepted, the money will become part of the down payment. This amount is often forfeited if the buyer decides to withdraw his offer.

EASEMENT
The right of a non-owner of property to limited use of land owned by another. Electric company, are a common example, as they often have an easement to put up electric power lines over someone's property.

EAVE
The part of the roof that extends beyond the exterior wall.

ECONOMIC DEPRECIATION
The decline in property value caused by external forces, such as neighborhood blight or adverse development.

ECONOMIC LIFE
The amount of time which any income-producing property is able to provide benefits to its owner.

EFFECTIVE AGE
The subjective, estimated age of a property based on its condition, rather than the actual time since it was built. Excessive wear and tear can cause a property's effective age to be greater than its actual age.

EMINENT DOMAIN
The legal process whereby a government can take ownership of a piece of property in order to convert it to public use. Often, the property owner is paid fair-market value for the property.

ENCROACHMENT
A building or other improvement on one property which invades another property or restricts its usage.

ENCUMBRANCE
A claim against a property. Anything that affects or limits the title to a property, such as outstanding mortgages, easement rights or unpaid property taxes.

ENERGY EFFICIENCY RATIO
An efficiency rating system for air conditioning units that corresponds to the number of BTU's output per watt of electricity used.

EQUAL CREDIT OPPORTUNITY ACT (ECOA)
U.S. federal law requiring that lenders afford people equal chance of getting credit without discrimination based on race, religion, age, sex etc

EQUITY
The difference between the fair market value of a property and that amount an owner owes on any mortgages or loans secured by the property. The value in which the owner has in real estate over and above the mortgages against it. When the mortgage and all other debts against the property are paid in full, the owner has 100% equity in his property.

EQUITY BUILDUP
The natural increase in the amount of equity an owner has in a property, accumulated through market appreciation and debt repayment.

ERRORS AND OMISSIONS INSURANCE
An insurance policy taken out by appraisers to cover their liability for any mistakes made during the appraisal process.

ESCROW
Funds and/or deed left in trust to a third party. Generally, a portion of the monthly mortgage payment is held in escrow by the lender to pay for taxes, hazard insurance and yearly mortgage insurance premiums. Often used in the payment of annual taxes or insurance for real property.

ESCROW ACCOUNT
An account setup by a mortgage servicing company to hold funds with which to pay expenses such as homeowners insurance and property taxes. An extra amount is paid with regular principal and interest payments that goes into the escrow account each month.

ESCROW ANALYSIS
An analysis performed by the lender usually once each year to see that the amount of money going into the escrow account each month is correct for the forecasted expenses.

ESCROW DISBURSEMENTS
The payout of funds from an escrow account to pay property expenses such as taxes and insurance.

ESTATE
The total of all property and assets owned by an individual.

EXAMINATION OF TITLE
The report on the title of a property from the public records or an abstract of the title.

EXCLUSIVE LISTING
An agreement between the owner of a property and a real estate agent giving the agent exclusive right to sell the property.

EXECUTOR
The person named in a will to administer the estate.


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F

FACADE
The front exposure of any building. Often used to describe an artificial or false front which is not consistent with the construction of the rest of the building.

FAIR CREDIT REPORTING ACT
A federal law regulating the way credit agencies disclose consumer credit reports and the remedies available to consumers for disputing and correcting mistakes on their credit history.

FAIR MARKET VALUE
The price at which two unrelated parties, under no duress, are willing to transact business.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
The U.S. Government agency created in 1933 which maintains the stability of and public confidence in the nation's financial system by insuring deposits and promoting safe and sound banking practices.

FEDERAL HOUSING ADMINISTRATION (FHA)
A sub-agency of the U.S. Department of Housing and Urban Development created in the 1930's to facilitate the purchase of homes by low-income, first-time home buyers. It currently provides federally-subsidized mortgage insurance for private lenders.

FEE APPRAISER
A certified, professional appraiser who forms an opinion of the fair market value of property and receives a set fee in exchange.

FEE SIMPLE
A complete, unencumbered ownership right in a piece of property.

FEE SIMPLE ESTATE
A form or ownership, or holding title to real estate. It is the most complete form of title, having an unconditional and unlimited interest of perpetual duration.

FHA MORTGAGE
A mortgage that is insured by the Federal Housing Administration (FHA).

FINAL VALUE ESTIMATE
The opinion of value of a piece of property resulting from an appraisal following the USPAP guidelines.

FIRST MORTGAGE
A mortgage that has a primary lien against a property. The primary loan or mortgage secured by a piece of property.

FIXED-RATE MORTGAGE (FRM)
A mortgage with an interest rate and monthly payments that remain constant over the life of the loan.

FIXTURE
Property, such as a hot water heater or plumbing fixture, that has become permanently attached to piece of real estate and goes with the property when it is sold.

FLOOD CERTIFICATION
An independent agency report required by the lender to determine whether a property is located in a flood hazard zone, which would then require a federally mandated flood insurance policy.

FLOOD INSURANCE
Supplemental insurance which covers a home owner for any loss due to water damage from a flood. Often required by lenders for homes located in FEMA-designated flood zones.

FLOOR PLAN
The representation of a building which shows the basic outline of the structure, as well as detailed information about the positioning of rooms, hallways, doors, stairs and other features. Often includes detailed information about other fixtures and amenities.

FORECLOSURE
A legal procedure in which property mortgaged as security for a loan is sold to pay the defaulting borrower's debt. The process whereby a lender can claim the property used by a borrower to secure a mortgage and sell the property to meet the obligations of the loan.

FORFEITURE
The loss of property or money due to the failure to meet the obligations of a mortgage or loan secured by that property.

FOUNDATION
The solid structural element upon which a structure is built.

FRONTAGE
The segment of a property that runs along a point of access, such as a street or water front.

FUNCTIONAL OBSOLESCENCE
A decrease in the value of property due to a feature or lack thereof which renders the property undesirable. Functional obsolescence can also occur when the surrounding area changes, rendering the property unusable for its originally intended purpose.


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G

GENERAL LIEN
A broad-based claim against several properties owned by a defaulting party.

GINNIE MAE
A wholly owned corporation created in 1968 within the U.S. Department of Housing and Urban Development to serve low-to moderate-income homebuyers.

GOVERNMENT MORTGAGE
Any mortgage insured by a government agency, such as the FHA or VA.

GRADE
The slope of land around a building. Also ground level.

GRADUATED PAYMENT MORTGAGE
A fixed rate loan with monthly payments that start low, increasing by a fixed amount for a specific number of years. After that period, the payments typically remain constant for the duration of the loan.

GRANTEE
Any person who is given ownership of a piece of property.

GRANTOR
Any person who gives away ownership of a piece of property.

GROSS AREA
The sum total of all floor space, including areas such as stairways and closet space. Often measured based on external wall lengths.

GROSS INCOME
Normal income, including overtime, prior to any payroll deductions, that is regular and dependable. This income may come from more than one source.


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Loans in New Mexico and across the US

Glossary of Terms

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H

HALF-SECTION
320 acres.

HAZARD INSURANCE
Insurance protection against damage to a property from fire, windstorms, and other common hazards.

HEADER
The framing elements above an opening such as a window or door.

HEARTH
The floor of a fireplace or the area immediately in front of it.

HEIGHT ZONING
A municipal restriction on the maximum height of any building or other structure.

HIDDEN AMENITIES
Assets of a property which contribute to its value, but are not readily apparent. Examples might include upgraded or premium building materials.

HIGHEST AND BEST USE
The most profitable and likely use of a property. Selected from reasonably probable and legal alternative uses, which are found to be physically possible, appropriately supported and financially feasible to result in the highest possible land value.

HOME EQUITY CONVERSION MORTGAGE (HECM)
Also known as a reverse annuity mortgage. It allows home owners (usually older) to convert equity in the home into cash. Normally paid by the lender in monthly payments. HECM's typically don't have to be repaid until the borrower is no longer occupying the home.

HOME EQUITY LINE OF CREDIT
A type of mortgage loan that allows the borrower to draw cash against the equity in his home.

HOME INSPECTION
A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value.

HOME INSPECTOR
A person who performs professional home inspections. Usually, with an extensive knowledge of house construction methods, common house problems, how to identify those problems and how to correct them.

HOMEOWNER'S ASSOCIATION
An organization of home owners in a particular neighborhood or development formed to facilitate the maintenance of common areas and to enforce any building restrictions or covenants.

HOMEOWNER'S INSURANCE
An insurance policy that covers the dwelling and its contents in case of fire or wind damage, theft, liability for property damage and personal liability.

HOMEOWNER'S WARRANTY
An insurance policy covering the repair of systems and appliances within the home for the coverage period.

HUD MEDIAN INCOME
Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).

HUD-1 STATEMENT
A standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchase.


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I

IMPROVED LAND
Any parcel of land which has been changed from its natural state through the creation of roads, buildings or other structures.

IMPROVEMENTS
Any item added to vacant land with the intent of increasing its value or usability.

IMPROVEMENT RATIO
The comparative value of a improved piece of land to its natural, unaltered state.

INCOME APPROACH
The process of estimating the value of property by considering the present value of a stream of income generated by the property.

INCOME PROPERTY
Real estate that is owned for investment purposes and not used as the owner's residence. A piece of property whose highest and best use is the generation of income through rents or other sources.

INDEPENDENT APPRAISAL
An estimation of value created by a professional, certified appraiser with no vested interest in the value of the property.

INSPECTION
The examination of a piece of property, its buildings or other amenities.

INSURABLE TITLE
The title to property which has been sufficiently reviewed by a title insurance company, such that they are willing to insure it as free and clear.

INTEREST
A charge paid for the use of money.

INTEREST RATE
A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.

INTERIM FINANCING
See (BRIDGE LOAN).

INVESTMENT PROPERTY
Any piece of property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the property value over time.


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J

JOINT TENANCY
A situation where two or more parties own a piece of property together. Each of the owners has an equal share, and may not dispose of or alter that share without the consent of the other owners.

JUDGMENT
An official court decision. If the judgment requires payment from one party to another, the court may put a lien against the payees property as collateral.

JUDICIAL FORECLOSURE
A type of foreclosure conducted as a civil suit in a court of law.

JUMBO LOAN
A mortgage loan for an amount greater than the limits set by Fannie Mae and Freddie Mac. Often called non-conforming loans.


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K

No terms currently.


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L

LAND CONTRACT
When the buyer agrees to make payments directly to the seller at pre-negotiated terms. The seller agrees to deed the property to the buyer upon completion of the agreement. The buyer becomes the owner of equity in this type of sale. (Also see OWNER FINANCING).

LATE CHARGE
An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan document.

LATENT DEFECTS
Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.

LEASE
A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.

LEASEHOLD ESTATE
A type of property ''ownership'' where the buyer actually has a long-term lease on the property.

LEASE OPTION
A lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.

LEGAL DESCRIPTION
The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides. Often related in specific distances from a known landmark or intersection.

LENDER
The person or entity who loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.

LIABILITIES
A person's outstanding debt obligations.

LIABILITY INSURANCE
Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in damage to another party.

LIEN
Any claim against a piece of property resulting from a debt or other obligation. A legal claim used as security for a debt.

LIFE CAP
A limit on how far the interest rate can move for an Adjustable Rate Mortgage.

LIKE-KIND PROPERTY
Any property which is substantially similar to another property.

LINE OF CREDIT
An extension of credit for a certain amount for a specific amount of time. To be used by the borrower at his discretion.

LIQUID ASSET
Any asset which can be quickly converted into cash at little or no cost, or cash itself.

LOAN
Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loan.

LOAN OFFICER
A person that "sells" loans, representing the lender to the borrower, and the borrower to the lender.

LOAN ORIGINATION
How a lender refers to the process of writing new loans.

LOAN SERVICING
The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments to.

LOAN-TO-VALUE RATIO (LTV)
The relationship between the amount of the mortgage and property value, usually shown as a percentage. The comparison of the amount owed on a mortgaged property to its fair market value.

LOCK-IN
An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.

LOCK-IN PERIOD
The amount of time the lender has guaranteed an interest rate to a borrower.


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M

MAJOR DEFICIENCY
A deficiency that strongly impacts the usability and habitability of a house. Or a deficiency that may be very expensive to repair.

MANUFACTURED HOUSING
Once known as ''mobile homes,'' manufactured housing is any building which has been constructed off site, then moved onto a piece of real property.

MARGIN
The difference between the interest rate and the index on an adjustable rate mortgage.

MARGINAL LAND
Land whose value has been diminished due to some internal defect or external condition. In most cases, the cost to correct the flaw or condition is as much or more than the expected return from the property.

MARKET VALUE
The price at which a property will sell, assuming a knowledgeable buyer and seller, both operating without undue pressure.

MASTER ASSOCIATION
An umbrella organization that is made up of multiple, smaller home owner's associations. Often found in very large developments or condominium projects.

MATURITY
The date on which the principal balance of a financial instrument becomes due and payable.

MERGED CREDIT REPORT
A credit report derived from data obtained from multiple credit agencies.

METES AND BOUNDS
A traditional way of describing property, generally expressed in terms of distance from a known landmark or intersection, and then following the boundaries of the property back to its origin.

METROPOLITAN AREA
The accumulated land in and around a city or other municipality which falls under the political and economic influence of that entity.

MINERAL RIGHTS
The legal right to exploit and enjoy the benefits of any minerals located below the surface of a parcel of land.

MISREPRESENTATION
A statement by one party in a transaction that is incorrect or misleading. Most misrepresentations are deemed to be intentional and thus may constitute fraud. Others, however, some are rendered through simple mistakes, oversights or negligence.

MORTGAGE
A contract in which a borrower's property is pledged as security for a loan which is to be repaid on an installment basis. A financial arrangement wherein an individual borrows money to purchase real property and secures the loan with the property as collateral.

MORTGAGE BANKER
A financial institution that provides primary and secondary mortgages to home buyers.

MORTGAGE BROKER
A person or organization that serves as a middleman to facilitate the mortgage process. Brokers often represent multiple mortgage bankers and offer the most appropriate deal to each buyer.

MORTGAGE NOTE
A written promise to pay a debt at a stated interest rate during a specified term. The agreement is secured by a mortgage.

MORTGAGEE
The entity that lends money in a real estate transaction.

MORTGAGE INSURANCE
A policy that fulfills that obligations of a mortgage when the policy holder defaults or is no longer able to make payments.

MORTGAGE INSURANCE PREMIUM (MIP)
An fee that is often included in mortgage payments that pays for mortgage insurance coverage.

MORTGAGE LIFE INSURANCE
A policy that fulfills the obligations of a mortgage when the policy holder dies.

MORTGAGOR
The entity that borrows money in a real estate transaction.

MULTI-FAMILY PROPERTIES
Any collection of buildings that are designed and built to support the habitation of more than four families.


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N

NATIONAL ASSOCIATION OF MASTER APPRAISERS (NAMA)
A non profit professional association organized in 1982, dedicated to the advancement of professionalism in real estate appraisal.

NATIONAL SOCIETY OF REAL ESTATE APPRAISERS
An organization founded in 1956 which promotes standards of professionalism in its members.

NATURAL VACANCY RATE
The percentage of vacant properties in a given area that is the result of natural turnover and market forces.

NEGATIVE AMORTIZATION
A loan in which the outstanding principal balance goes up instead of down because the monthly payments are not large enough to cover the full amount of interest due (When the balance of a loan increases instead of decreases.). Also called deferred interest. Usually due to a borrower making a minimum payment on an Adjustable Rate Mortgage during a period when the rate fluctuates to a high enough point that the minimum payment does not cover all of the interest.

NEIGHBORHOOD LIFE-CYCLE
The evolution of neighborhood use and demographics over time. Economic fluctuations, municipal zoning changes and population shifts can effect the life cycle.

NEIGHBORHOOD
A subsection of a municipality that has been designated by a developer, economic forces or physical formations.

NET LEASABLE AREA
The space in a development, outside of the common areas, that can be rented to tenants.

NO-COST LOAN
Many lenders offer loans that you can obtain at "no cost." You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.

NO-POINT LOAN
A loan with no "points". The interest rate on such a loan will be higher than a loan with points paid. Also sometimes refers to a refinance loan where closing costs are included in the loan.

NON-CONFORMING USE
The use of land for purposes contrary to the applicable municipal zoning specifications. Often occurs when zoning changes after a property is in use.

NONLIQUID ASSET
Any asset which can not be quickly converted into cash at little or no cost.

NOTE
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.

NOTE RATE
The interest rate stated on a mortgage note.

NOTICE OF DEFAULT
Formal written notice from a lender to a borrower that default has occurred.


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O

OBSOLESCENCE
The process of an assets value diminishing due to the development of more desirable alternatives or because of the degradation of its capabilities.

OCCUPANCY
A physical presence within and control of a property.

OCCUPANCY RATE
The percentage of properties in a given area that are occupied.

OFFER TO PURCHASE
A written proposal to buy a piece of real estate that becomes binding when accepted by the seller. Also called a sales contract.

OFF-SITE IMPROVEMENTS
Buildings, structures or other amenities which are not located on a piece of property, but are necessary to maximize the use of the property or in some way contribute to the value of the property.

ON-SITE IMPROVEMENTS
Buildings, structures or other amenities that are erected on a piece of property and contribute to its value.

OPEN SPACE
Any land which has not had any significant buildings or structures erected on it. Most often used to describe desirable neighborhood features like parks.

ORIGINAL EQUITY
The amount of cash a home buyer initially invests in the home.

ORIGINAL PRINCIPAL BALANCE
The total amount of principal owed on a mortgage loan at the time of closing.

ORIGINATION FEE
A fee charged for the work involved in the evaluation preparation and submission of a proposed mortgage loan. Refers to the total number of points paid by a borrower at closing.

OWNER FINANCING
A transaction where the property owner / seller provides all or part of the financing.

OWNER OCCUPIED
The state of property wherein the owner occupies at least some portion of the property.


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P

PARTIAL INTEREST
A shared ownership in a piece of property. May be divided among two or more parties.

PARTIAL PAYMENT
A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.

PERIODIC PAYMENT CAP
The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment period.

PERIODIC RATE CAP
The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.

PERSONAL PROPERTY
Owned items which are not permanently affixed to the land.

PERSONAL RESIDENCE
The primary domicile of a person or family.

PLANNED UNIT DEVELOPMENT (PUD)
A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity.

PLAT
A map of a piece of land showing boundary lines, streets, actual measurements and easements.

POINT
A fee paid to the lender on closing day to increase the effective yield of the mortgage. A point is one percent of the amount of the mortgage loan. Also called a discount point. A percentage of a mortgage amount (one point = 1 percent).

PRE-APPROVAL
A commitment by a lender to extend credit provided that specific conditions are met. The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.

PREFABRICATED
Any building or portion thereof which is manufactured and assembled off site, then erected on a property.

PREPAYMENT
Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.

PREPAYMENT PENALTY
A fee that may be charged to a borrower who pays off a loan before it is due. A charge paid to the lender by the borrower if a mortgage loan is repaid before its term is over.

PRE-QUALIFICATION
A preliminary assessment of a buyer's ability to secure a loan, based on a specific set of lending guidelines and buyer representations made. This is not a guarantee or commitment by a lender to extend credit. Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.

PRIME RATE
The interest rate that banks and other lending institutions charge other banks or preferred customers. The interest rate charged by banks to their preferred corporate customers, it tends to be an estimator for general trends in short term interest rates.

PRINCIPAL
The amount owed on a mortgage which does not include interest or other fees. The amount borrowed or remaining unpaid; also, that part of the monthly payment that reduces the outstanding balance of a mortgage.

PRINCIPAL BALANCE
The outstanding balance of principal on a mortgage. Does not included interest due.

PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI)
The most common constituents of a monthly mortgage payment. PITI is an acronym for payments to lender that cover principal, interest, taxes and insurance on a property.

PRIVATE MORTGAGE INSURANCE (PMI)
Insurance written by a private, non-government, mortgage insurance company to protect the lender against losses caused by mortgage default. This is commonly required on loan transactions involving less than a 20% down payment or equity position. (When the LOAN TO VALUE RATIO is less than 20%).

PROPERTY
Any item which is owned or possessed.

PURCHASE AGREEMENT 
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.


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Q

QUADRAPLEX
Any building designed to accommodate four families.

QUALIFYING RATIOS
Guidelines used by lenders to determine how much of a loan a home buyer qualifies for. Often referred to as debt-to-income ratios (or DTI). Two ratios are used in determining credit worthiness for a mortgage loan. One is the ratio of a borrower's monthly housing costs to monthly income. The other is a ratio of all monthly debt to monthly income.

QUITCLAIM DEED
A legal document which transfers any ownership an individual has in a piece of property. Often used when the amount of ownership is not known or is unclear.


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R

RATE LOCK
A guarantee from a lender of a specific interest rate for a period of time.
 
RAW LAND
Any land which has not been developed.
 
REAL ESTATE
A piece of land and any improvements or fixtures located on that land.
 
REAL ESTATE AGENT
A licensed professional who facilitates the buying and selling of real estate.

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)
A federal law requiring lenders to give full disclosure of closing costs to borrowers.

REAL ESTATE SETTLEMENT STATEMENT
Final settlement statement often referred to as the HUD-1 form, used to itemize buyer, seller, broker, and lender charges and credits at closing.

REAL PROPERTY
Land, improvements and appurtenances, and the interest and benefits thereof.

REALTOR
A real estate agent, broker or sales associate who is a member of the National Association of Realtors.

RECEPTACLE
An electrical outlet to plug into.

RECORDER 
A local government employee whose role it is to keep records of all real estate transactions within the jurisdiction.

RECORDING
The filing of a real estate transaction with the appropriate government agent (normally the RECORDER). A real estate transaction is considered final when it is recorded.

RECORDING FEE
The charges made by the register of deeds to record the legal documents.

REFINANCE
Repaying a debt with the proceeds of a new loan, using the same property as collateral or security. Typically to gain a lower interest rate or convert equity into cash.

REGISTER
Where air from a furnace or air conditioning system enters the room.

RELOCATION SERVICE
Any company or agency that assists corporate employees in relocating from one place to another. Services may include hiring and coordinating real estate agents, moving companies, utilizes and the like.

REMAINING BALANCE
The amount of principal, interest and other costs that has not yet been repaid.

REMAINING TERM
The amount of time remaining on the original amortization schedule.

REMODEL
An activity designed to improve the value or desirability of a property through rebuilding, refurbishing, redecorating or adding on to it.

REPAYMENT PLAN
A plan to repay delinquent payments, agreed upon between a lender and borrower, in an effort to avoid foreclosure.

REPLACEMENT RESERVE FUND
An account, or fund, setup for the replacement of short life items , such as carpeting, in the common areas of a cooperative property.

RESIDENTIAL PROPERTY
A piece of property whose highest and best use is the maintenance of a residence.

REVOLVING DEBT
A type of credit that allows the borrower/customer to make charges against a predetermined line of credit. The customer then pays monthly installments on the amount borrowed, plus interest.

RIGHT OF FIRST REFUSAL
An agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to others.

RURAL
An area outside of an established urban area or metropolitan district.


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S

SALE PRICE
The actual price a property sells for, exclusive of any special financing concessions.

SALES COMPARISON APPROACH
An appraisal practice which estimates the value of a property by comparing it to comparable properties which have sold recently.

SCARCITY
An economic principal that dictates the price of a good or service through the interaction of supply and demand. When an item is scarce, its price tends to rise, given a constant demand. Real Estate is a classic example of scarcity.

SECOND MORTGAGE
A loan secured by the equity in a home, issued on property that is already encumbered by an existing mortgage (ie: the first mortgage). The second mortgage is subordinate to the first.

SECONDARY MORTGAGE MARKET
An economic marketplace where mortgage bankers buy and sell existing mortgages.

SECURED LOAN
A loan that is backed by collateral. In the case of a mortgage loan, the collateral is the house.

SECURITY
The property used as collateral for a loan.

SEMIDETACHED HOUSING
Two residences which share a common wall.

SERVICER
A financial institution which collects mortgage payments from borrowers and applies the appropriate portions to principal, interest and any escrow accounts.

SERVICING
The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments to.

SINGLE-FAMILY PROPERTY
A property designed and built to support the habitation of one family.

SUBDIVISION
A residential development that is created from a piece of land which has been subdivided into individual lots.

SUBJECT PROPERTY
A term which indicates a property which is being appraised.

SURVEY
A map charting a particular piece of real estate. A specific map of a piece of property, prepared by an engineer or surveyor, which includes the legal boundaries and any improvements or features of the land. Surveys also depict any rights-of-way, encroachments or easements.

SWEAT EQUITY
The method whereby a home owner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built.


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T

TAX-EXEMPT PROPERTY
Any property which is not taxed.

TENANCY
The right to occupy a building or unit.

TENANCY IN COMMON
A form of holding title, whereby there are two or more people on title to a property, ownership does not pass on to the others upon the death of one individual.

THIRD PARTY ORIGINATION
When a lender uses a third party to originate and package loans for sale to the secondary market (Fannie Mae, Freddie Mac).

TITLE
A specific document which serves as proof of ownership of a property. A clear title is one without any outstanding liens or encumbrances. A cloud on title refers to any outstanding liens or encumbrances which could impair the title.

TITLE COMPANY
An organization which researches and certifies ownership of real estate before it is bought or sold. Title companies also act at the facilitator ensures all parties are paid during the real estate transaction.

TITLE INSURANCE
A policy which insures a property owner should a prior claim arise against the property after the purchase has been completed. This also covers a lender should a question of ownership arise. The policy is designed to protect the buyer or lender after closing from financial losses arising from any defects in the title that may have occurred prior to purchase.

TITLE SEARCH
The process whereby the TITLE COMPANY researches a properties title history and ensures that no outstanding claims exist. A check of public record to disclose the past and current facts regarding ownership of a particular piece of property.

TRANSFER OF OWNERSHIP
Any means by which the ownership of a property changes hands.

TRANSFER TAX
In some areas city, county or state taxes imposed when property passes from one person to another.

TRANSFER OF TAX
Taxes payable when title passes from one owner to another.

TRUSTEE
A fiduciary who holds or controls property for the benefit of another.

TRUTH IN LENDING
A federal law requiring full disclosure by lenders to borrowers of all terms, conditions and costs of a mortgage. The law requires lenders to disclose the terms and conditions of a mortgage, including the APR, based on certain charges incurred by the borrower. If the charges were $0, the APR would be equal to that actual interest rate on the loan.


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U

UNDER IMPROVED LAND
A piece of land which has been improved, but not to the full extent of its potential.

UNENCUMBERED PROPERTY
Any property which has no outstanding claims or liens against it.

UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP)
Developed in 1986 by the Ad Hoc Committee on Uniform Standards and copyrighted in 1987 by The Appraisal Foundation, USPAP forms the guidelines followed by every licensed and certified real estate appraiser in the United States. The purpose of these Standards is to establish requirements for professional appraisal practice, which includes appraisal, appraisal review, and appraisal consulting. The intent of these Standards is to promote and maintain a high level of public trust in professional appraisal practice.

UNDERWRITING
The process of evaluating a loan application to determine the risk involved for the lender.

USEFUL LIFE
The span of time over which a property can be used or can provide benefits to its owner.


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V

VACANCY RATE
The current percentage of vacant properties in a given area, regardless of why they are vacant.

VA MORTGAGE
A mortgage that is guaranteed by the Department of Veterans Affairs (VA).

VARIANCE
An exception to municipal zoning regulations granted for a specific time period to allow for non-conforming use of the land.

VESTED
Having the right to use a portion of a fund such as an IRA. Typically vesting occurs over time. If you are 100% vested, you have a right to 100% of the fund.

VETERANS AFFAIRS, DEPARTMENT OF (VA)
The successor to the Veteran's Administration, this government agency is responsible for ensuring the rights and welfare of our nation's veterans and their dependents. Among other duties, the VA insures home loans made to veterans.


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W

WALK-THROUGH INSPECTION
A process whereby an appraiser examines a property in preparation for estimating its value. Also, the process of inspecting a property for any damage prior to that property being bought or sold.

WARRANTY
An affidavit given to stipulate the condition of a property. The person giving the warranty assumes liability if the condition turns out to be untrue.

WEAR AND TEAR
A term used to indicate the normal damage inflicted on a property through every-day use.


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X &Y

No terms currently.
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Z

ZERO LOT LINE
A municipal zoning category wherein a building or other fixture may abut the property line.

ZONE
A specific area within a municipality or other jurisdiction which conforms to certain guidelines regarding the use of property in the zone. Typical zones include single-family, multi-family, industrial, commercial and mixed-use.


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