A Warranty Deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer).    A General Warranty Deed protects the grantee against title defects arising at any point in time, extending back to the property's origins.  A Special Warranty Deed protects the grantee only against title defects arising [...]

A final inspection shortly before settlement to make sure the property is in the same condition that it was at the time the offer contract was written.

The lender’s process of deciding whether to make a loan to a potential borrower based on credit, employment, assets, and other factors, and the matching of this risk to an appropriate rate, term, and loan amount.

This is a search of the land records in the county where the home or land is located.  It certifies to the lender and buyer, who the actual owner of the land is and whether there are any liens against it.  Liens can be from a loan with a bank, a judgment against the owner, [...]

Under federal law, your lender is required to supply you with a Notice of Right to Cancel. The Notice of Right to Cancel provides each borrower under the transaction a three-business day window to cancel the new mortgage loan.

A Quitclaim Deed is where a person is giving or selling to someone whatever interest they have, if any, in a piece of property.  In a Quitclaim Deed, there are no warranties about the title, or that the Grantor even owns it.  These are usually used between family members or neighbors, transferring property to one [...]

This document is a legal contract between you and your lender where you have to repay the borrowed money at the interest rate, and that the lender can’t change the terms after it is signed.   The promissory note details the loan amount, interest rate, payment schedule, and length of the term.  It also lists the [...]

A fee paid to a lender for providing the mortgage loan. The origination fee is stated in the form of points. One point is 1 percent of the mortgage amount.

The Deed of Trust is simply you putting your property up as collateral to secure the repayment of your loan.  If you honor your trust and make all payments, the deed of trust is canceled and your property is free and clear.  If you breach your trust and don’t repay the loan, then the trustee [...]

This is the relationship between the amount of money you owe on your property and the appraised value (or sales price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has an LTV of 80 percent.