Real estate glossary
1. MORTGAGE
The mortgage is a contract by which a person or entity (generally the bank), provides an amount of money to another person (the debtor). This
contract is known as the warranty being offered by the borrowed money.
Mortgage allows offering the property as a guarantee that the borrowed money was returned in time, as stipulated in the contract. If the
deadlines are not met, the
creditor has the authority to auction the property mortgaged to cancel the debt. Therefore, always try to make an agreement that benefits both
sides. This will allow
you to pay its debt without anything so surprised and prejudiced.The mortgage law is quite complex, so it is advisable to seek a reliable real
estate broker with a good track record. Otherwise, you could leave injured with higher quotas or something similar. Take your
precautions.
2. APPRAISAL
This is the price paid for the property, written in a document. Here we can see the
comparison of prices of similar houses in the same area.
3. APPRAISER
He is the person who estimated the assessed value of real estate or personal property. Usually, they are self-employed. However, a group of them
works with the
same lenders. This job requires a well-trained professional and above all experience.
4. AMORTIZATION SCHEDULE
He is the person who estimated the assessed value of real estate or personal property. Usually, they are self-employed. However, a group of them
works with the
same lenders. This job requires a well-trained professional and above all experience.
5. CLOSING
This term may have different interpretations, depending on the country of residence. However, the meaning is the same. It's the end of business
transaction, where
the documents are signed and payment is made. It’s also known as the closing of the sale.
6. CREDIT REPORT
It is the credit history of individuals. This report is elaborated by the credit bureau. Subsequently, the report will be delivered to the
lender, who determines whether a
person qualifies for accessing credit.
7. DEFAULT
It is not met when the dates of payment of the mortgage. If after 30 days of the due date of the respective shares, this is not canceled, the
loan is considered to be
in default.
8. DOWN PAYMENT
It is the first cash payment being made by the purchaser to obtain a property. The mortgage is not considered in this payment.
9. FORECLOSURE
It is a legal process by which the borrower loses their property due to lack of payments and arrears accumulated. In the near future, this would
mean the public
auction of the property, which is used to cancel the mortgage debt.
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