Mrs. Aylward

 Mortgage: A conditional pledge of property to a creditor/bank/financial institution as security for repayment of a debt specifying the terms in reference to length of time to repay the loan, the total amount to be paid, the amount of interest to be paid, and the amount of monthly payment to be paid.

 most common type of mortgage, usually 15 or 30 year term, usually fixed rate

 loan that is insured by the federal government against the borrower defaulting on the loan. Usually has a lower down payment, can be fixed or adjustable interest rate, any person can apply for this type loans

 MUST currently be a member of armed forces OR a veteran. VA does not require a down payment and Congress sets eligibility requirements

 loans may be repaid in years. Loans are paid in equal monthly payments.

 money that is given as a deposit by the potential buyer to the seller as a good faith gesture to show that buyer is serious about buying the property.  Can range from $100 to thousands. The money is held in trust until the closing and then applied toward the final price of the home.  The more money put down will equal a lower mortgage.

 a legally binding contract that the buyer and seller sign that states all of the conditions and specific terms of the sale.  Includes detailed description of property, purchase price, amount of down payment, any items to be included in sale (refrigerator, drapery, etc.), how taxes are divided

 Must be completed before the sale in order to establish that the building on the land is actually the same as in legal description and what the correct boundary lines are

 part of the home buying process, several may be required by the lender or the state, others are optional.

◦ General home: certified home inspector checks for structural soundness and ensures that the plumbing, electrical and heating systems are in proper working order. May also check roof, exterior/interior walls. ◦ Termite: the most common required inspection. Most contracts require the seller to pay for this inspection and any repairs needed.

 Closing Costs ◦ costs associated with closing of the loan and transferring the property into the name of the buyer. Most are paid by the buyer, but there are fees that the seller is required to pay.

 Title search: search to make sure that the seller actually holds the title to the property and no one else has any claims to the property

 valuation of the property. This can determine how much the lender will loan for a mortgage

fee paid to the lender for processing the loan. Usually 1% of the loan amount.

 money paid to the attorney to represent the buyer at the time of closing.