|
Airports
- Airports:
Tulsa International Airport - 7777 E.
Apache
918-838-5000
- Bus:
Tulsa
Transit - Schedule
Information
918-582-2100
Back to
top
Get Your Credit
Report
When
you are preparing to buy a home, it is important
to know your credit position. In fact, even if you
are not shopping for a home, it is advisable to
review your credit report periodically to make
sure that there is nothing incorrect on the
report.
There
are several resources available to request your
credit report online (fees vary):
Most of these sites have resources
available that explain how to read and interpret
the results on your credit report. You can also
check with your mortgage company to help you
understand what types of financing you qualify for
and to suggest any steps you might take to improve
your credit.
Back to
top
Real Estate
Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ABSTRACT
The notes
made by a title examiner based on his examination
of the land records. These notes are a concise
summary of the transactions affecting the
property.
ACCELERATION CLAUSE
A
condition in a real estate financing instrument
giving the lender the power to declare all sums
owing lender immediately due and payable upon the
happening of an event, such as the sale of the
property, or a delinquency in the repayment of the
note.
ADDENDUM
A form/document added
to a contract or agreement, also known as a Rider.
ADJUSTABLE RATE MORTGAGE (ARM)
A
mortgage loan which bears interest at a rate
subject to change during the term of the
loan.
AGENCY
A relationship in which
the agent is given the authority to act on behalf
of another person (Principal).
AGREEMENT
A meeting of minds.
AMORTIZED LOAN
A loan to be repaid, interest and
principal, by a series of regular payments that
are equal or nearly equal, without any special
balloon payment prior to maturity.
AMORTIZATION
The periodic principal
pay down of a loan.
ANNUAL PERCENTAGE RATE
(A.P.R.)
Is an interest rate reflecting
the cost of a mortgage as a yearly rate. This rate
is likely to be higher than the stated note rate
or advertised rate on the mortgage, because it
takes into account point and other credit costs.
The APR allows home buyers to compare different
types of mortgages based on the annual cost for
each loan.
APPRAISAL
An estimate of
the value of property, made by a qualified
professional called an "appraiser." Most states
require licenses. Various lenders have their own
lists of approved appraisers.
APPROVED
ATTORNEY
An attorney authorized by a title
insurance company to handle closings and render
title opinions.
ASSIGN
To transfer
interest.
ASSIGNEE
One who receives
an assignment or transfer of rights. An assignment
of a contract transfers the right to buy property.
ASSIGNOR
The one who assigns to
another person.
ASSUMPTION
The
agreement between buyer and seller where the buyer
takes over the payments on an existing mortgage
from the seller. Assuming a loan can usually save
the buyer money since this is an existing mortgage
debt, unlike a new mortgage where closing costs
and new, possibly higher, market-rate interest
charges will apply.
Back
to top
BALLOON MORTGAGE
Usually a
short-term fixed-rate loan which involves small
payments for a certain period of time and one
large payment for the remaining amount of the
principal at a time specified in the contract.
BANKRUPTCY
A provision of Federal
Law whereby a debtor surrenders his assets to the
Bankruptcy Court and is relieved of the future
obligation to repay his unsecured debts. A Trustee
in Bankruptcy administers the assets, selling them
to pay as much of the debt as possible. If your
seller is in bankruptcy, the Trustee in Bankruptcy
owns the property and is the party to sign the
contract and make decisions. After bankruptcy, the
debtor is discharged and his unsecured creditors
may not pursue further collection efforts against
him. Secured creditors, those holding deeds of
trust or judgment liens, continue to be secured by
the property but they may not take other action to
collect from the debtor.
BLANKET
MORTGAGE
A mortgage covering at least two
pieces of real estate as security for the same
mortgage. This sort of loan is more common for
commercial property or "special case" loans.
BREACH OF CONTRACT
Failure to
perform provisions of a contract.
BROKER
An individual in the
business of assisting in arranging funding or
negotiating contracts for a client buy who does
not loan the money himself. Brokers usually charge
a fee or receive a commission for their services.
Back
to top
CHAIN OF TITLE
The series of
transactions from grantor to grantee as evidenced
in the land records.
CHATTEL
Personal property.
CLOSING
The
meeting between the buyer, seller and lender or
their agents where the property and funds legally
change hands. Also called settlement. Closing
costs usually include an origination fee, discount
points, appraisal fee, title search and insurance,
survey, taxes, deed recording fee, credit report
and notary fees.
COLLATERAL
Property pledged to secure a loan.
CONTRACT
A legally enforceable
agreement between two parties.
CONTRACT FOR
DEED
Also known as a Land Contract or Land
Installment Contract. A method of financing where
title remains in the Seller's name until the Buyer
has paid the full purchase price.
CONVENTIONAL LOAN
A mortgage not
insured by FHA or guaranteed by the VA.
COST APPROACH
A method used by an
appraiser to estimate replacement costs of
improvements less depreciation.
CREDIT
REPORT
A report documenting the credit
history and current status of a borrower's credit
standing.
Back to
top
DEBT-TO-INCOME RATIO
The ratio,
expressed as a percentage, which results when a
borrower's monthly payment obligation on long-term
debts is divided by his or her gross monthly
income. See housing expenses-to-income ratio.
DEED
The written document conveying
real property. The Deed must be executed (signed),
acknowledged, and delivered to the Grantee. Once
recorded at the Courthouse, the original piece of
paper is not needed to convey title in the future.
DEED OF TRUST
A voluntary lien to
secure a debt deeding the property to Trustees who
foreclose, sell the property at public auction, in
the event of default on the Note the Deed of Trust
secures..
DEFAULT
Failure to meet
legal obligations in a contract, specifically,
failure to make the monthly payments on a
mortgage.
DELIVERY
The final,
unconditional and absolute transfer of a DEED to
the Grantee so that the Grantor may not revoke it.
A Deed, signed but held by the Grantor, does not
pass title.
DOWN PAYMENT
Money paid
to make up the difference between the purchase
price and the mortgage amount.
DUE ON SALE
CLAUSE
A clause in the deed of trust or
mortgage that makes the loan non-assumable by
providing the noteholder may call the loan
immediately due and payable upon a sale or
conveyance of an interest in the property.
Back to
top
EARNEST MONEY
A good faith
deposit.
ENCUMBRANCE
Any lien,
liability or charge against a property.
EQUAL CREDIT OPPORTUNITY ACT (ECOA)
Is a federal law that requires lenders and
other creditors to make credit equally available
without discrimination based on race, color,
religion, national origin, age, sex, marital
status or receipt of income from public assistance
programs.
EQUITY
The difference
between the fair market value and current
indebtedness, also referred to as the owner's
interest. The value an owner has in real estate
over and above the obligation against the
property.
ESCROW
A disinterested
third party holds funds or documents on behalf of
others and subject to their instructions.
Back to
top
FIXTURE
An item of personal
property attached to real property so that it can
not be removed without damage to the real
property. A fixture becomes part of the real
property.
FORECLOSURE
The process
by which a lender sells property securing a loan
in order to repay the loan. Under a deed of trust,
foreclosure is by public auction after appropriate
advertisement. A mortgage may require the lender
to obtain Court approval prior to sale.
GENERAL WARRANTY DEED
The
Grantor warrants title against all claims.
HAZARD INSURANCE
A form of
insurance in which the insurance company protects
the insured from specified losses, such as fire,
windstorm and the like.
HOMESTEAD DEED
A declaration filed in the land records that
an individual is asserting his homestead
exemption. That exemption allows one to protect
some assets (amount varies by state) against the
claims of creditors.
HOUSING RATIO
The ratio, expressed as a percentage,
which results when a borrower's housing expenses
are divided by his/her gross monthly income. See
debt-to-income ratio.
Back to
top
IMPOUND
That portion of a
borrower's monthly payments held by the lender or
servicer to pay for taxes, hazard insurance,
mortgage insurance, lease payments, and other
items as they become due. Also known as reserves.
INDEMNITY
A protection against
actual loss or damage as a result of the matter
mentioned. An indemnity is not an absolute
guarantee that something won't happen; it states
the terms under which an actual loss will be
compensated.
INDEX
A published
interest rate against which lenders measure the
difference between the current interest rate on an
adjustable rate mortgage and that earned by other
investments (such as one-, three-, and five-year
U.S. Treasury security yields, the monthly average
interest rate on loans closed by savings and loan
institutions, and the monthly average
costs-of-funds incurred by savings and loans),
which is then used to adjust the interest rate on
an adjustable mortgage up or down.
JOINT TENANTS
Two or more
persons own a property. Joint tenants with the
common law right of survivorship means the
survivor inherits the property without reference
to the decedent's will. Creditors may sue to have
the property divided to settle claims against one
of the owners.
JUDGMENT LIEN
A
judgment is a lien against all real property owned
by the judgment debtor in the county where the
judgment is docketed (recorded).
JUMBO LOAN
A loan which is larger (more than $207,000
as of 1/1/96) than the limits set by the Federal
National Mortgage Association and the Federal Home
Loan Mortgage Corporation. Because jumbo loans
cannot be funded by these two agencies, they
usually carry a higher interest rate.
JUNIOR MORTGAGE
Mortgage of lesser
priority than the prior recorded mortgage.
Back to
top
LIEN
A claim or
charge against property. Property is said to be
encumbered by a lien and the lien must be removed
to clear title.
LIFE CAP
With
regard to an adjustable rate mortgage, a ceiling
the note rate cannot exceed over the life of the
loan.
LOAN-TO-VALUE RATIO (LTV)
The
relationship between the amount of the mortgage
loan and the appraised value of the property
expressed as a percentage.
LOAN APPLICATION
The loan application is the source of
information on which the lender bases a decision
to make the loan; defines the term of the loan,
gives the name(s) of the borrower(s), place of
employment, salary, bank accounts and credit
references, and describes the real estate that is
to be mortgaged. It also stipulates the amount of
the loan being applied for and the repayment
terms.
MARKET VALUE
The highest price
that a buyer would pay and the lowest price a
seller would accept on a property. Market value
may be different from the price a property could
actually be sold for at a given time.
MORTGAGE
A voluntary lien filed
against property to secure a debt, usually a loan.
To foreclose, the lender must often institute a
court action and the borrower may have the right
to reclaim the property after foreclosure..
MORTGAGE INSURANCE
Money paid to
insure the mortgage when the down payment is less
than 20 percent. See private mortgage insurance,
FHA mortgage insurance.
NET WORTH
The difference
between total assets and total liabilities.
NON-ASSUMPTION CLAUSE
A statement
in a mortgage contract forbidding the assumption
of the mortgage without the prior approval of the
lender. Note: The signed obligation to pay a debt,
as a mortgage note.
NOTE
A written
promise to pay a certain sum of money at a certain
time. A negotiable note starts "Pay to the order
of" and is transferable by endorsement similar to
a check.
NOTARY PUBLIC
One
authorized by law to acknowledge and certify
documents and signatures.
Back to
top
OFFER
A proposal; after
acceptance it becomes a contract.
OPTION
A right given for a
consideration to keep an offer to purchase or
lease open for specific time.
PAY-OFF AMOUNT
A total balance;
amount of a full payment on existing loan or lien.
PLAT
A map showing the division of
a piece of land with lots, streets and, if
applicable, common area.
PITI
Principal, Interest, Taxes and Insurance. Also
called monthly housing expense.
POINTS
(loan discount points)
Prepaid interest
assessed at closing by the lender. Each point is
equal to 1 percent of the loan amount (e.g., two
points on a $100,000 mortgage would cost $2,000).
POWER OF ATTORNEY
A written
document authorizing another to act on his behalf
as an attorney in fact. One does not need to be a
licensed attorney to act as an attorney in fact,
but power of attorney forms are powerful legal
documents that should be used only under advice of
a licensed attorney at law.
PREPAYMENT
PENALTY
An additional charge imposed by
the lender for paying off a loan before the due
date.
PRIME RATE
The most favorable
interest rate charged by lenders on short-term
loans to qualified customers.
PRIVATE
MORTGAGE INSURANCE (PMI)
In the event that
you do not have a 20 percent down payment, lenders
will allow a smaller down payment- as low as 3
percent in some cases. With the smaller down
payment loans, however, borrowers are usually
required to carry private mortgage insurance.
Private mortgage insurance will usually require an
initial premium payment and may require an
additional monthly fee depending on your loan's
structure.
PROMISSORY NOTE
A
written unsecured note promising to pay a
specified amount of money on demand, transferable
to a third party.
PUBLIC SALE
Sale,
auction open to the public.
PURCHASE MONEY
MORTGAGE (PMM)
Seller financing as a part
of the purchase price.
Back to
top
QUIET TITLE
A suit brought to
remove a claim or objection on title.
QUITCLAIM DEED
A deed releasing
whatever interest you may hold in a property but
making no warranty whatsoever.
REALTOR
A member of the
National Association of Realtors.
RECISION
The cancellation of a contract. With
respect to mortgage refinancing, the law that
gives the home owner three days to cancel a
contract in some cases once it is signed if the
transaction uses equity in the home as security.
RECORDING FEES
Money paid to the
lender for recording a home sale with the local
authorities, thereby making it part of the public
records.
REFINANCE
Obtaining a new
mortgage loan on a property already owned, often
to replace existing loans on the property.
RESPA
Short for the Real Estate
Settlement Procedures Act. RESPA is a federal law
that allows consumers to review information on
known or estimated settlement costs once after
application and once prior to or at a settlement.
The law requires lenders to furnish the
information after application only.
REVERSION
A provision in a
conveyance that the land will return to the
grantor upon the happening of an event or
contingency.
SECONDARY MARKET
A market for
the purpose of purchase and sale of existing
mortgages usually at discounted prices to provide
greater liquidity to the mortgagee/lender.
SECOND MORTGAGE
A mortgage recorded
after a First mortgage, ranks second in priority.
SPECIAL ASSESSMENT
Additional tax
imposed by the local government for public
improvements such as new streets, etc.
SPECIAL WARRANTY DEED
The seller
warrants he has done nothing to impair title but
makes no warranty before his ownership.
SUBDIVISION
Dividing land into lots
and streets. The owner signs a PLAT and Deed of
Resubdivision which is recorded among the land
records. The state and county have strict
requirements for subdivision of land.
Back to
top
TENANTS IN COMMON
Two or more
persons own the property with no right of
survivorship. If one dies, his interest passes to
his heirs, not necessarily the co-owner. Either
party, or a creditor of one, may sue to partition
the property.
TITLE
A document that
gives evidence of an individual's ownership of
property.
TITLE INSURANCE
Insurance
that provides an indemnity against loss or damage
as a result of defect in title ownership to a
particular piece of property. Title insurance
covers mistakes made during a title of search as
well as matters which could not be found or
discovered in the public records such as missing
heirs, mistakes, fraud and forgery.
TITLE
SEARCH
An examination of the public
records, including court decisions, to disclose
facts concerning the ownership of real estate. The
title examiner prepares an abstract and the title
agent prepares a binder but decisions regarding
the legal sufficiency of title or questions
requiring legal interpretation must be resolved by
a licensed attorney at law.
TRUTH-IN-LENDING
A federal law
requiring disclosure of the Annual Percentage Rate
to home buyers shortly after they apply for the
loan. Also known as Regulation Z.
Back to
top
UNDERWRITING
The decision
whether to make a loan to a potential home buyer
based on credit, employment, assets, and other
factors and the matching of this risk to an
appropriate rate and term or loan amount.
VA LOAN
A long-term, low- or
no-down-payment loan guaranteed by the Department
of Veterans Affairs. Restricted to individuals
qualified by military service or other
entitlements.
VARIABLE RATE MORTGAGE (VRM)
See adjustable rate mortgage
WARRANTY DEED
A deed conveying
the title to a property with a warranty of clean,
clear marketable title.
WRAPAROUND
The debt secured includes an existing debt
already on the property. The payments made to the
holder of the wraparound include payments due on
the existing loan and the holder must forward the
appropriate portion of each payment to the
existing noteholder. Often used to avoid a
prepayment penalty or a due on sale clause. Can
refer to a wraparound deed of trust or contract
for deed.
ZONING
Regulation of
private land use and development by local
government.
Back to
top | 
