When we talk about abstracts in the title insurance world, we aren’t referencing an unusual piece of art but rather a very important report. An abstract tells the title insurers exactly what they need to know about the property’s history in order to prepare a title commitment. Read on to find out more!
There’s so much to know about home appraisals, I could fill a book! A home appraisal is conducted during the buying process by an independent company. It determines the worth or value of a property and is also used to determine how much a lender is willing to give to buy a particular property.
Here are 26 appraisal terms that you should know if you’re thinking about buying a home:
Any feature of a property that increases its value or desirability. These might include natural amenities such as location or proximity to mountains.
A segment of land between two municipal zones which acts as a shield and to keep one zone from encroaching on the other.
A term used by appraisers to describe properties which are similar to a subject property in size, condition, location and amenities.
Debt Equity Ratio
The ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the home.
The difference between the fair-market value of a property and the amount an owner owes on any mortgages or loans secured by the property.
A private, shareholder-owned company that works to make sure mortgage money is available for people to purchase homes. It was created by Congress in 1938.
A corporation created in 1968 within the U.S. Department of Housing and Urban Development to serve low-to moderate-income home buyers.
Home Equity Line of Credit
A type of mortgage loan that allows the borrower to draw cash against the equity in his or her home.
An estimation of value by a certified appraiser with no vested interest in the value of the property.
When two or more parties own a piece of property together. Each of the owners has an equal share.
Even after buying a home, improvements made are factored into the value. Additions can increase property value or usability.
An asset that can be quickly converted into cash at little or no cost.
A statement by one party in a transaction that is incorrect or misleading. Some misrepresentations are deemed intentional and thus may be fraudulent.
The use of land for purposes contrary to municipal zoning. This can occur when zoning changes after a property was already being used in a certain capacity.
The percentage of properties in a specific area that are occupied.
The amount owed on a mortgage that doesn’t include interest or other fees.
A legal document which transfers property ownership.
A lender’s guarantee of an interest rate for a set period of time.
A map of a piece of property which includes the legal boundaries, improvements or features of the land.
Truth in Lending
A federal law which requires full lender disclosure to borrowers of all terms, conditions and costs of a mortgage.
A piece of land which hasn’t been developed to the full extent of its potential.
The percentage of vacant properties in a specific area.
A process where an appraiser examines a property in preparation for estimating its value.
X Is for Examination of Title
The report on a property’s title from the public records or an abstract of the title.
A real estate agent or broker who is a member of the National Association of REALTORS.
An area within a municipality that conforms to certain guidelines regarding property usage in the zone.