Acceleration Clause A provision in a mortgage that gives the lender the right to demand payment of the entire outstanding balance if a monthly payment is missed. Check with your Big Rapids Lender.

Acceptance A party's consent to enter into a contract and be bound by the terms of the offer.

Adjustable Rate Mortgage (ARM) A mortgage whose interest rate changes over time based on a pre-determined economic index. Check with your Big Rapids Lender.

Amenities Features of real property that enhance its attractiveness and increase the satisfaction of the occupant or user, even though the feature is not essential to the property's use (e.g., a swimming pool).

Appraisal An evaluation of the property to determine its value for purposes of the loan. An appraisal is concerned chiefly with market value, or what the home would sell for in the marketplace. Big Rapids has several Appraisors.

Appreciation An increase in the value of a real estate.

Assessed Value The valuation placed on real estate by a public tax assessor for the purposes of taxation. Big Rapids has a website with search.

Assessment The process of placing a value on real estate for the strict purpose of taxation. Big Rapids and Mecosta County have website to search for assessments.

Assessment may also refer to a levy against real estate a special purpose (e.g., a sewer assessment). 

Binder A preliminary agreement, secured by the payment of earnest money, under which a buyer offers to purchase real estate.

Building Code Local or state building regulations that govern the design, construction and materials used in a building. In Big Rapids call 591-0105.

Buyer's Broker A broker who represents the buyer in a fiduciary capacity.

Buyer's Market A situation in which the supply of properties available exceeds demand. As a result, sellers are forced to lower their prices to attract buyers.

Certificate of Title Like a car title, this is the paper that signifies ownership of a home. You can start looking at the Big Rapids office of the Michigan Secretary of State.

City/County Tax Stamp A tax that is required in some municipalities if real estate changes hands or a new loan is obtained. The amount of this tax can vary with each state, city and county. Big Rapids has a website to look up info.

Clear Title A title that is free of clouds, liens, disputed interests or legal questions with regard to ownership of the real estate. Big Rapids has several title agencies. Using one is highly recommended.

Closing Costs Sometimes called settlement costs, these are costs in addition to the price of the home, including loan service charges, title search and insurance, and transfer of ownership charges.

Closing Day The date on which the title for property passes from the seller to the buyer, and/or the date on which the borrower signs the mortgage.

Condominium A type of property that includes individual ownership of one unit in a multi-unit dwelling, and an undivided interest in the common area and facilities that serve the entire multi-unit project.

Contingency A condition that must be met before a contract is legally binding.

Cosigner Another person who signs your loan and assumes equal responsibility for it.

Credit Bureau An agency that gathers and keeps your credit record (e.g., Experion, Equifax and TransUnion).

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 credit worthiness.

Deed A legal document that transfers ownership of a property from one person to another.

Default Failure to make payments on a timely basis or to comply with other conditions of a loan.

Depreciation A decline in the value of a home as the result of time, changes in the housing market, wear and tear, adverse changes in the neighborhood and its patterns, or any other reason.

Downpayment An initial payment on a home, usually a specific percentage of the home purchase price, that is required of a borrower at the time of loan closing.

Earnest Money The deposit money given to the seller by the potential buyer to show that he/she is serious about buying the real estate. If the deal goes through, the earnest money is usually applied toward the downpayment. If the deal does not go through, it may be forfeited.

Easement Rights A right of way granted to a person or company authorizing access to or over the owner's land. Electric companies often have easement rights across your property.

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, handicap, age, sex, marital status, or receipt of income from public assistance programs.

Equity The difference between the market value of the home and the amount of money you still owe on it.

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.

Escrow Account The account in which funds are held by the lender for the payment of real estate taxes and/or homeowners insurance. This can also refer to the account in which that funds are held for the completion of repairs or improvements to a property that cannot be completed prior to closing.

Escrow Funds Money, or papers representing transactions, that are given to a third party to hold until all conditions in a contract are fulfilled.

Fair Credit Reporting Act A consumer protection law that sets up a procedure for correcting mistakes on one's credit record.

Flood Insurance Insurance required for properties in federally designated flood areas.

Foreclosure The process by which a property may be sold by the lender when the homeowner fails to pay the monthly payment. The loan is considered in default.

Hazard Insurance Insurance to protect the homeowner and the lender against physical damage to a property from fire, wind, vandalism or other hazards.

Homeowner's Association Fee A term related to a condominium associations collection of money from the owners of each condominium. In determining whether you can afford the property, the lender will calculate the homeowner's association fee as part of your housing-to-income ratio. The fee pays for common expenses including insurance, maintenance, trash removal and is used to establish reserves for future major expenditures.

Home Inspection A complete and detailed inspection that examines and evaluates the mechanical and structural condition of a property. A complete and satisfactory home inspection is often required by the home buyer. Big Rapids has several home inspectors.

Homeowners Insurance Insurance that protects a homeowner against the cost of damages to a property caused by fire, windstorms, and other common hazards. Also referred to as hazard insurance. Big Rapids has several insurance agencies.

HUD Also known as the U.S. Department of Housing and Urban Development; among other things, HUD ensures that home loans made by lenders meet minimum standards.

HUD-1 Statement Also referred to as the closing statement or the settlement statement, this document that provides line-by-line information of the financial details related to a specific real estate transaction, such as the fees paid by the seller and the buyer for a purchase transaction. Interest The fee charged for borrowing money.

Joint Tenancy A form of co-ownership that gives each tenant equal interest and equal rights in the property, including the right of survivorship.

Liabilities A person's financial obligations, including both long-term and short-term debt, as well as any other amounts that are owed to others.

Lien A legal claim against a property that must be paid when the real estate is sold.

Loan-to-Value Ratio (LTV) The relationship between the amount of a loan and the total value of the real estate. Your Big Rapids Lender can help here.

Offer to Purchase Real Estate A promise by a buyer to enter into an agreement to purchase real estate, provided certain terms and conditions are met by the property's seller. I can help with purchasing Big Rapids Area Real Estate.

PITI (P)principal, (I)interest, (T)axes and (I)insurance; a reference to the total monthly payment required to repay a real estate loan in accordance with its term, as well as monthly escrow payments for taxes and insurance.

Prepaid Expenses The initial deposit at the time of closing for real estate taxes, hazard insurance, and the subsequent monthly deposits made to the lender for that purpose. Expenses may also include an interest amount.

Prepaid Items/Expenses Obligations paid in advance at a real estate closing.

Pre-Qualification The process of determining how much money a prospective home buyer will be eligible to borrow before a loan is applied for.

Private Mortgage Insurance (PMI) Insurance provided by non-government insurers that protects lenders against loss if a borrower defaults. Your Big Rapids Lender can help you here.

Purchase and Sale Agreement (P&S) A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

Property Taxes Taxes based on the assessed value of the home, paid by the homeowner for community services such as schools, public works and other costs of local government. Big Rapids and Mecosta have websites to look up parcel taxes.

Property taxes are sometimes paid as part of the monthly mortgage payment.

Radon A naturally appearing radioactive gas, found in some buildings, that in sufficient concentrations may cause health problems. Big Rapids has a few Radon Inspectors. Always use a Certified Inspector.

Real Estate Agent A person licensed to negotiate and transact the sale of real estate on behalf of an owner or a seller. For Big Rapids Real Estate use me...Please. 

Real Estate Settlement Procedures Act (RESPA) A consumer protection law that requires lenders to give borrowers advance notice of closing costs.

Refinancing The process of paying off one loan with the proceeds from a new loan secured by the same property. Your Big Rapids lender can help you here.

Repair and Maintenance The costs incurred in replacing damaged items or maintaining household systems to prevent damage.

Sellers Market An economic situation that favors the seller because the demand for property exceeds the supply.

Special Assessment A tax for a specific purpose such as providing paved streets or new sewers.People whose properties abut the improved streets or tie into the new sewer system must pay the tax. Condominium owners may also be assessed for major repairs done in common areas of their building.

Survey A drawing that shows the legal boundaries of a property. Big Rapids and Mecosta County have several surveying firms.

Tenancy by Entirety A type of joint ownership of property available only to a husband and wife.

Tenancy in Common A type of joint ownership in a property without the right of survivorship.

Title The evidence of a person's legal right to possession of property, normally in the form of a deed. In Big Rapids the Courthouse has a Register of Deeds to check for title or use on of the Big Rapids Title Companies.

Title Company A company that specializes in insuring title to property. Big Rapids has sevral Title Compnies.

Title Insurance This special insurance protects lenders against a loss of interest in a property due to unforeseen occurrences that have already occurred and might be traced to legal flaws in previous ownerships (e.g., forged deed). An owner can protect his interest by purchasing separate coverage. Big issues can arrise if you don't have title insurance.

Title Search A check of the title records to ensure that the seller is the legal owner of the property, and that there are no liens or other claims outstanding.

Truth-in-Lending A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a loan, including the APR and other charges.

Zoning Exercise of police powers of city in regulating and controlling the character or use of property. Zoning laws divide cities into different areas according to use, from single-family residences to industrial plants

Zoning ordinances A set of laws which control the size, location and use of buildings within these different areas.