Common Terms

ARM
A feature of the home or property that serves as a benefit to the buyer but that is
not necessary to its use; may be natural (such as location, woods, water) or man-made (such as a swimming pool or
garden).

Condominium
Repayment of a mortgage loan through monthly installments of principal and
interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a
specific time period (for example, 15 or 30 years)

Home inspection
Calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it
includes the interest, points, mortgage insurance, and other fees associated with the loan.

Realtor
The first step in the official loan approval process; this form is used to record important information about the
potential borrower necessary to the underwriting process.