Common Area

Renters who lease units in apartment complexes or home buyers who purchase residences in multifamily complexes often have to share common areas. Pools, gyms, lounge areas, basketball courts, parking lots — these are all types of standard common areas found in apartment building and condo complexes. To maintain these common areas, those who lease or purchase […]

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Commitment Letter

(1) Securing a home loan in this day and age can be a nightmare for many buyers. One of the most exciting days for these individuals during the buying process, though, is when they get their commitment letter from their lender. While this letter isn’t a legally binding document, it does signiify the first step […]

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Conventional mortgage

A conventional mortgage is a loan not guaranteed or insured by the federal government. These borrowers usually make larger down payments (at least 20%), don’t require mortgage insurance, and are at a lower risk of defaulting on their home loan payment.

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Comparable sales

Comparable sales are used by an appraiser to establish how much a home is worth based on what other similar homes in the area have sold for recently. Only homes that have legally closed count as a comp — and most lenders and insurance providers require appraisers to use at least three closed sales.

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Common area assessments

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.

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Co-borrower

If a buyer is having trouble getting approved for a loan, they can elicit the help of a co-borrower. This person is usually a family member or friend who’s added to the mortgage and guarantees the loan. They’re listed on the title, have ownership interest, sign loan documents, and are obligated to pay monthly mortgage payments […]

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Closing costs

(1) Closing costs are usually comprised of between 2-5% of the total purchase price of the home. According to a recent survey by Zillow, the average homebuyer pays approximately $3,700 in closing costs. These fees are paid on or by the closing date. (2) Nothing is easy when it comes to wrapping up a real estate […]

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Clear title

Also known as a “just title,” “good title,” or a “free and clear title” — a clear titledoesn’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.

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Certificate of reasonable value

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.

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