Appraisal: The property is given a valuation by comparing it to similar properties that have recently sold` that are in close proximity to the property that is being appraised. This is done be a certified appraiser.
Closing: Loan documents are signed at the title company. The escrow officer notarizes and dates the documents and returns them to the lender.
Credit Report: Lenders require a tri-bureau (3 different credit reporting agencies) when they are deciding to lend to a borrower or not. This report tells an in depth credit history over the past 10 years. This includes everything from creditors, to late payments, to credit limits, to inquiries, to judgments, collections, bankruptcies, public records, etc.
Deed of Trust: An instrument that is used in many states in lieu of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary), and is re conveyed of the title upon full payment.
Escrow: All instruments necessary to the sale are delivered to a neutral third party (typically a title company), with instructions as to their use. Choosing the title company is the right of the seller and the listing agent.
Pre-Approval: This constitutes loan approval. The financial condition of the borrower has been documented and a lender has underwritten the loan. Usually the approval is subject to an acceptable appraisal.
Pre-: Analyzing a borrower’s income and debt and pre-qualifying the borrower for a
Qualification: specific loan program. This does not constitute loan approval.
Re conveyance: An instrument that releases an interest in the property. Once a lender is paid off a Deed of Reconveyance is used to remove the lender from the title.
Recording: Filing documents affecting real property as a matter of public record.
Tax Service: A fee paid to the lender and then paid to a service monitoring the status of property tax.
Title: The evidence that one has the right of possession. When escrow is opened a preliminary title report is ordered to determine the status of the title.