A cash-out refinance, also known as a cash-out refi, is when a homeowner refinances their mortgage for more than it’s worth and withdraws the difference in cash. To be eligible for this kind financing, a borrower usually needs at least 20% in equity.
During the VA loan process, lenders require veterans to show proof they’ve met the minimum service requirement to qualify for a VA loan.
A certificate of reasonable value (CRV) is issued by the Department of Veterans Affairs and is required for veterans to receive a VA loan. It establishes the maximum value of the property and therefore the maximum size of the loan.
Like a Blue Book for homes, the chain of title is the documentation of all past ownership of a property. It runs from the present owner to the very first owner of the property.
Also known as a “just title,” “good title,” or a “free and clear title” — a clear title doesn’t have any kind of lien or levy from creditors. It means there’s no question of legal ownership of the property such as building code violations or bad surveys.
Closing is the final stage of the real estate transaction. The date is agreed upon when both the buyer and seller go under contract on the home. On the closing date, the property is legally transferred from seller to buyer. The closing is the final step in fully executing a real estate sale.
Closing costs are fees paid when you close on a mortgage loan. Typically, closing costs equal 3% to 5% of your total home loan balance. Appraisal fees, attorney’s fees, and inspection fees are examples of common closing costs. Closing costs are usually comprised of between 2-5% of the total purchase price of the home.
A co-borrower is any additional borrower whose name appears on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have an obligation to repay the loan.
Most real estate agents make money through commissions, or payments made directly to real estate brokers for services rendered in the sale or purchase of a property. A commission is usually a percentage of the property’s selling price, although it can also be a flat fee.
If you pay a monthly fee towards a Homeowners Association (HOA), part of that fee likely goes toward a common area assessment to maintain an area open to the community.
Community property refers to property acquired by a married couple and owned equally by both spouses.
Comparable sales, also known as comparables or comps, is a real estate appraisal term referring to properties with characteristics that are similar to a subject property whose value is being sought.