A Veteran’s Administration appraisal that establishes the maximum VA Mortgage loan amount for a specified property.

Written authorization given by a local municipality that allows a newly completed or substantially completed structure to be inhabited – not to be confused with “Notice of Completion.”

Liquid assets that are readily available to be used to pay the closing costs involved in a closing of a Mortgage transaction.

A limit on how much an adjustable rate mortgages monthly payment or annual interest rate can increase. A cap is meant to protect the borrower from large increases and may be a payment cap, an interest cap, a life-of- loan cap or periodic cap. A payment cap is a limit on the monthly payment. An interest cap is a limit on the amount of the interest rate. A life-a-loan cap restricts the amount the interest rate can increase over entire term of the loan. A periodic cap limits the amount the interest rate can change each interest rate adjustment date.

Where the buyer pays additional discount points in return for a below market interest rate; or the buyer or seller deposits sufficient funds with the lender to reduce the rate during the first one to three years of the loan; or pays closing costs such as the origination fee. During times of high interest rates, buy-downs may induce buyers to purchase property they may not otherwise have purchased.

Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances.

A loan, usually a second Mortgage , that is collateralized by the borrower’s present home (that is usually for sale).

One who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full.

A mortgage covering at least two pieces of Real Estate as security for the same mortgage.

A preliminary agreement, secured by the payment of earnest money, between a buyer and seller as an offer to purchase Real Estate. A binder secures the right to purchase Real Estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded.