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Credit report:
A report of an individual's credit history prepared by a
credit bureau and used by a lender in determining a loan
applicant's creditworthiness.
Deed:
The legal document conveying title to a property.
Deed of trust:
The document used in some states instead of a mortgage;
title is conveyed to a trustee rather than to the borrower.
Default:
Failure to make mortgage payments on a timely basis or to
comply with other conditions of a mortgage.
Delinquency:
A loan in which a payment is overdue but not yet in default.
Depreciation:
A decline in the value of a property; the opposite of
"appreciation."
Down payment:
The part of the purchase price that the buyer pays in cash
and does not finance with a mortgage.
Due-on-sale clause:
A provision in a mortgage allowing the lender to demand
repayment in full if the borrower sells the property securing
the mortgage.
Earnest money:
A deposit given to the seller to show that a prospective
buyer is serious about buying the house.
Easement:
The right to use another's land.
Equal Credit Opportunity Act (ECOA):
A federal law that prohibits lenders from denying mortgages on
the basis of the borrower's race, color, religion, national
origin, age, sex, marital status, or receipt of income from
public assistance programs.
Equity:
The difference between the market value of a property and
the home owner's outstanding mortgage balance. If your
home is worth $100,000 and you owe $65,000, you are said to have
35% equity in your home.
Equity loan:
A loan based on the borrower's equity in his or her home.
Escrow:
The holding of documents and money by a neutral third party
prior to closing; also, an account held by the lender into which
a homeowner pays money for taxes and insurance.
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