Loan Glossary

The complete history of all previous ownership transfers and liens on a property. A clear chain of title is required before a lender will approve a mortgage.

The final step in a real estate transaction where all documents are signed, funds are transferred, and ownership of the property changes hands.

Fees and expenses paid at or before closing, typically 2%–5% of the loan amount. Includes origination fees, appraisal, title insurance, escrow deposits, attorney fees, and prepaid interest.

An additional person who applies for and signs a loan alongside the primary borrower. Their income and credit are considered, and they share equal responsibility for repaying the loan.

An asset pledged to secure a loan. If the borrower defaults, the lender can seize the collateral. For mortgages, the property itself serves as collateral.

A numerical representation of a borrower's creditworthiness, ranging from 300 to 850. Lenders use credit scores to evaluate loan eligibility, determine interest rates, and set loan terms.