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TermDefinition
- ApplicationAn initial statement of personal and financial information required to apply for a loan.
- Application FeeThe fee that a mortgage lender or broker charges to apply for a mortgage to cover processing costs.
- AppraisalAn estimated value of property from analysis of facts about the property; an opinion of value.
- Appraisal FeeA fee charged by a licensed, certified appraiser to render an opinion of market value as of a specific date. This fee is paid to the outside appraisal company engaged to objectively determine the fair market value of the property.
- Appraised ValueAppraised value is the evaluation of a property’s value. A professional appraiser is typically hired by during the mortgage origination process and paid for by the borrower. The appraised value determines how much money may be borrowed and under what terms. Loan-to-Value (LTV) is determined by an appraisal.
- AppraiserA professional who conducts an analysis of the property, including examples of sales of similar properties in order to develop an estimate of the value of the property. The analysis is called an appraisal.
- AppreciationAn increase in the market value of a home due to changing market conditions and/or home improvements.
- ApprenticeAn apprentice is a construction professional (e.g., plumber or electrician in the making) who is training and working under the supervision of a licensed individual.
- ApronThis is the vertical trim board under a window.
- ArbitrationA process where disputes are settled by referring them to a fair and neutral third party (arbitrator). The disputing parties agree in advance to agree with the decision of the arbitrator. There is a hearing where both parties have an opportunity to be heard, after which the arbitrator makes a decision.
- ArchitectA licensed professional who designs buildings or assists in the renovation and planning of commercial or residential spaces, oversees and advises on creation of the design or structural changes to a building.
- Area WellsThis is the metal or concrete holding back the earth to make space for basement windows.
- As-IsA property that is stated as-is indicates the seller is unwilling to perform repairs. It could also mean the property’s price is as-is. It is common this price is lower than market prices in the local area.
- AsbestosAsbestos (or magnesium silicate) is a material which was previously favored in construction and insulation products due to its stability and fire-resistance. Now known to cause health issues following prolonged exposure, it is no longer permitted for use in building and abatement is suggested or required when feasible.
- Assessed ValueTypically the value placed on property for the purpose of taxation.
- AssessmentTypically the value placed on property for the purpose of taxation.
- AssessorA public official who establishes the value of a property for taxation purposes.
- Assessor Parcel NumberA unique number assigned to each parcel of land by a county tax assessor. The APN is based on formatting codes depending on the home’s location. The local government uses APNs to identify and keep track of land ownership for property tax purposes.
- APNA unique number assigned to each parcel of land by a county tax assessor. The APN is based on formatting codes depending on the home’s location. The local government uses APNs to identify and keep track of land ownership for property tax purposes.
- AssetAnything of monetary value that is owned by a person or company. Assets include real property, personal property, stocks, mutual funds, etc.
- Asset-Based LoansAn asset-based loan or asset utilization loan uses assets as income for qualification purposes. A type of non-QM loan that allows borrowers to qualify for a mortgage loan with their assets instead of income, whereby assets are used as collateral to secure the loan.
- Asset DepletionAn asset-based loan or asset utilization loan uses assets as income for qualification purposes. A type of non-QM loan that allows borrowers to qualify for a mortgage loan with their assets instead of income, whereby assets are used as collateral to secure the loan.
- Asset Dissipation MortgageAn asset-based loan or asset utilization loan uses assets as income for qualification purposes. A type of non-QM loan that allows borrowers to qualify for a mortgage loan with their assets instead of income, whereby assets are used as collateral to secure the loan.
- Asset Depletion LoanA type of non-QM loan that allows borrowers to use their substantial assets to qualify for a mortgage loan instead of employment income, whereby assets are used as collateral to the loan instead of income.
- Asset Dissipation MortgageA type of non-QM loan that allows borrowers to use their substantial assets to qualify for a mortgage loan instead of employment income, whereby assets are used as collateral to the loan instead of income.
- Asset ManagementA systematic approach to the procurement, maintenance, operation, rehabilitation and disposal of one or more assets which integrates the utilization of assets and their performance with the business requirements of asset owners or users.
- Asset ValuationIn the real estate market, this expression is applied to the valuation of land, buildings, and/or plant and machinery generally for incorporation into company accounts. In such cases, the ownership of the asset is not necessarily transferred, but the valuation is of interest to shareholders or is required for company takeovers, public listings or mortgages.
- AssignmentThe transfer of ownership, rights, or interests in property by one person, the assignor, to another, the assignee.
- Assignment of ContractSigning over of contract. Typically requires consent of other party prior to any liabilities can be assigned.
- Assignment of MortgageA document evidencing the transfer of ownership of a mortgage from one party to another.
- Assignment Recording FeeA fee assessed to cover recording fees associated with a loan transfers closing from a lender to a specialized loan servicer who handles the collection of monthly payments.
- Assisted HousingA privately owned rental property that, through government subsidy, houses low-income residents who otherwise would not be able to afford market rents. 1. Property-based: the owner receives government assistance in the form of mortgage insurance, a reduced mortgage interest rate, or tax incentives. 2. Resident-based: the residents receive some form of rental subsidy.
- Assumable MortgageA mortgage loan that can be taken over (assumed) by the buyer when a home is sold. An assumption of a mortgage is a transaction in which the buyer of real property takes over the seller’s existing mortgage; the seller remains liable unless released by the lender from the obligation. If the mortgage contains a due-on-sale clause, the loan may not be assumed without the lender’s consent.
- AssumptionA buyer’s agreement to take primary responsibility for paying an existing mortgage from a seller.
- Assumption FeeThe fee imposed by a lender charges to allow a buyer to assume the existing borrower's mortgage.
- AstragalA molding, attached to one of a pair of swinging double doors, against which the other door strikes.
- Attic AccessAn opening that is placed in the drywalled ceiling of a home providing access to the attic.
- Attic VentilatorsIn houses, screened openings provided to ventilate an attic space.
- Awning WindowA type of window that is hinged at the top and the bottom panel, or sash, swings outward.
- Back ChargeBillings for work performed or costs incurred by one party that, in accordance with the agreement, should have been performed or incurred by the party to whom billed.