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Condominium - A structure of two or more units, the
interior space of which are individually owned; the balance of the property with the land
and building is owned in common by the owners of the individual units.
Construction Loan - Short term financing of real
estate construction. Generally followed by term financing called a "take out"
loan issued upon completion of the improvements. Borrowers who own their own lots will
have to obtain interim financing for the construction of their home. This may also be
called an interim loan.
Contingency - Commonly, the dependence upon a
stated event which must occur before a contract is binding. For example: The sale of a
house, contingent upon the buyer obtaining financing.
Down Payment - Cash portion paid by a buyer's own
funds, as opposed to that portion of the purchase price which is financed.
Easement - A right created by grant, reservation,
agreement, prescription or necessary implication which one has in the land of another,
such as a public utility easement which would be shown on a survey.
Econocmic Life - The "Profitable" life of
an improvement. Must always cover the life of the loan.
Egress - A term concerning the right to come and go
across the land (public or private) of another. Usually in the form a Right to Ingredd
which is a recorded document between the owners on the road.
Encroachment - Generally, construction onto the
property of another, such as wall or fence, building, etc...
Enhancement - This refers to the rate sheet. When
financing products are priced, there can be factors on a rate sheet that are positive and
the loan officer is compensated for them.
Equal Credit Opportunity Act - Federal law
granting women certain independent status, and prevents lenders from considering nagative
credit aspects as the possibility of a women having children and dropping out of the labor
market.
Escrow Officer - This person works for the title
company, reviews the title work, survey and other documents related to the loan
transaction so that the closing will flow smoothly. This person also coordinates the
closing between the buyer and the seller and any realtors.
Fee Simple - Ownership includes the home and the
land that the home sits on.
F.H.A Federal Housing Administration - A federal
agency which insures first mortgages, enabling lenders to loan a very high percentage of
the sales price.
FHLMC - Federal Home Loan Mortgage Corporation
(Freddie Mac) - A private corporation that purchases first mortgages, both conventional
and federally insured from members of the Federal Reserve System and the Federal Home Loan
Bank System.
FNMA - Federal National Mortgage Association(Fannie
Mae) - A private corporation dealing in the purchase of first mortgage.
Findings - This is the approval, suspense or denial
of your loan. The findings represent the items you must obtain and submit to underwriting
for a revised decision or to clear conditions.
Funder - This is the person employed by the
investor who will work with the Escrow Officer to review the documents signed by the
borrower and makes sure all the approval conditions have been met. Then they issue a
funding number and release the wiring instructions for the title company to finalize the
transaction.
Gift Letter - A voluntary transfer of funds without
the need for repayment. All loans submitted with gift funds must include a gift letter. It
must state the relation of the doner to the borrower and meet other requirements.
GNMA - Government National Mortgage Association
(Ginnie Mae) - A federal association, working with F.H.A and V.A loan purchases.
Hit - This refers to the rate sheet and loan
products. For negative on the loan or special financing concessions, the loan officer will
have to pay for them. This will be considered a "cost " to the price of the
loan.
Homeowner's Insurance - Includes the coverage of
Hazard Insurance plus added coverage such as personal liabilty, theft away from the home,
and other such coverages. For mortgages purposes the buyer need only insure for fire cost.
Homestead Exemption - An exemption in property
taxes for the borrower's primary residence. A borrower can only have one
"homestead" at a time. It must be filed by the borrower after closing. It is not
part of the closing process and is not automatically changed to the new borrower. If the
borrower does not file their exemption, they will lose it until they do.
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If you are looking for a mortgage loan in the Texas Hill Country,
contact Judy, Mel or Charlie, they will work with you to find the right loan.
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