Knowledge is power and there’s no difference when it comes to obtaining a home loan! To help you on the journey to becoming an educated borrower, we’ve created this glossary of terms you’ll need to know during your home loan process.
There are currently 14 names in this directory beginning with the letter C.
Cash Out Refinance
A cash out refinance is the replacement of your first mortgage, where the interest rate is usually lower than the interest rate on a home equity loan.
Cash to Close
Cash to close" refers to the total amount of money you need to bring to closing to complete your real estate transaction. This includes your down payment, earnest money deposit, etc.
Closing
Closing is the final step in a real estate transaction, also known as a completion or settlement.
Closing Agent
A closing agent is an impartial third party who oversees the final details of a real estate transaction.
Closing Costs
Closing costs are all of the fees you pay to your mortgage company to close the loan. Some of these costs are appraisal, processing, and underwriting fees. These costs are included in your "cash to close"
Closing Disclosure (CD)
A Closing Disclosure is a form that outlines all of the details of your loan. This includes your interest rate, projected monthly payments, fees, closing costs and much more. It is required by law that your lender gives you your Closing Disclosure at least 3 days before closing.
Co-Borrower
A co-borrower is any additional borrow whose name will appear on loan documents and whose income and credit history are used for loan qualification.
Conditional Approval
A conditional approval means that you have been approved for a mortgage, but still need to provide additional documentation pertaining to your financial situation before closing.
Condominium
A condominium, or condo, is one of a group of housing units, in which each homeowner has an individual unit and all land in the condominium is owned by all the homeowners.
Construction Loan
A construction loan is a short-term loan which is used to finance building a home or other real estate project.
Contingency
A contingency is a provision in a real estate contract that details that the contract would cease to exist in the event of a certain occurrence.
Conventional Loan
A conventional loan is a mortgage that is not guaranteed or insured by a government agency.
Credit (loan related)
Credit is a contractual agreement when a borrower receives something of value now and agrees to repay the lender in the future.