What is an appraisal?

The determination of property value based on recent sales information of similar properties.

Who is an appraiser?

Someone who is professionally licensed to determine the value of a home.

What is an assessment?

Determining a property's value for the purpose of taxation.

What is Certificate of Reasonable Value (CRV)?

An appraisal that has been performed on a property that is being paid for with a VA loan. After the property has been appraised, the Veterans Administration issues a CRV.

What is a deed?

A legal document which affects the transfer of ownership of real estate from the seller to the buyer.

What is a home inspection?

A thorough assessment by a professional regarding the structural and mechanical condition of a property.

What is a lender?

The bank, mortgage company, or mortgage broker offering the loan. Many institutions only "originate" loans and then resell the obligation to third parties.

What does Loan-To-Value Ratio (LTV) mean?

The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. A LTV ratio of 90 means that a borrower is borrowing 90% of the value of the property and paying 10% as a down payment. For purchases, the value of the property is assumed to be the purchase price, for refinances the value is determined by an appraisal.

What is a mortgage?

A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans.

What is a mortgagee?

The lender in a mortgage agreement.

What is a mortgage banker?

A financial intermediary that originates or funds loans, collects payments, inspects the property, and forecloses if necessary.

What is mortgage insurance?

Insurance that covers the lender against losses incurred as a result of a default on a home loan. This is usually required on all loans that have a loan-to-value higher than 80%. Mortgages that have an 80% LTV that do not require mortgage insurance have higher interest rates. The lenders then pay the mortgage insurance themselves. In addition, FHA loans and some first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.

What is an Owner's Title Policy?

A policy protecting the buyer for the amount of the purchase price in the event of a future title dispute.

What is Private Mortgage Insurance (PMI)?

Paid by a borrower to protect the lender in case of default. PMI is typically charged to the borrower when the Loan-to-Value Ratio is greater than 80%.

What is zoning?

The right of a community, under its police power, to dictate the use of property within its boundaries.