Do you know someone who is buying a house or plans to this year? The real estate market has BOOMED at the Lake of the Ozarks. If you or someone you know is buying a home, this is the blog series for you. Keep reading this week's blog for mortgage terms to know when it comes to the home buying process. Check with our mortgage loan officers at the Lake of the Ozarks if you have any questions whatsoever about this! First Bank of the Lake can be reached at (573) 348-2265.
Common Mortgage Terms to Know: Part 5
Earnest Money
A portion of the down payment delivered with a purchase offer by the purchaser of real estate. Delivered to the seller, or an escrow agency, by the purchaser with the purchase offer as evidence of good faith. Also known as a deposit.
Easement
A right of way giving persons other than the property owner access to or over a property.
Encroachment
An improvement that illegally violates another's property or right to use that property.
Equal Credit Opportunity Act (ECOA)
A Federal law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, sex, age, marital status, receipt of income from public assistance programs or past exercising of rights under the Consumer Credit Protection Act.
Equity
The ownership interest; i.e. portion of a property's value over and above the liens against it.
Equity Loan
A loan based on the borrower's equity in his or her home.
Escrow
An item of value, money or documents, deposited with a third party, to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate. In some parts of the country, escrows of taxes and insurance premiums are called impounds or reserves.
Escrow Payment
That portion of a mortgagor's monthly payments held by a lender or servicer to pay taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also called impounds or reserves in some states.
We understand that the mortgage process can be overwhelming, especially if you're a first-time homebuyer. Fear NOT! First Bank of the Lake is here for you! Give us a call today at the phone number listed below. You can also follow us on our social media channels to stay up to date on our latest announcements and mortgage terms!
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