The Coffey Group Home Buyers Guide

MORTGAGE COMMITMENT Approval of loan after all information has been verified

DOWN PAYMENT Cash of payment toward purchase

EARNEST MONEY DEPOSIT (EMD) Purchaser’s deposit held in Escrow until settlement ENCUMBRANCE Property interest or lien on property

MORTGAGE NOTE Agreement to repay a mortgage loan

PREMIUM Fee paid by borrower to HUD to pay for cost of FHA mortgage insurance

EQUITY Owner’s interest in property over mortgage value and market value ESCROW Deposit account for earnest money held in trust until settlement

PRINCIPAL Mortgage loan balance owed

PURCHASE (OR SALES) AGREEMENT Contract of sales

QUITCLAIM DEED Deed transferring ownership from one party to another party STATE STAMPS Transfer taxes paid to state or county to transfer property TAX Fee levied by government against property owners TITLE Document of ownership of property TITLE INSURANCE Insurance property owner for claims against the title TITLE SEARCH Search land records for liens or encumbrances against the title

GRANTEE Buyer of property GRANTOR Seller of property

HUD ( Housing & Urban Development) U.S Department that enforces federal housing laws

INTEREST Charge paid by borrower to lender

LIEN Claim filed against deed on property fow money owed

MARKETABLE TITLE Title is free of liens/encumbrances

MORTGAGE Liens against property for which money is borrowed

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