Maryland Real Estate - Chapter 14

what is a walk through?

happens right before the closing to ensure that nothing has changed throughout the closing process

what is a survey?

information on location of a parcel to make sure it is free and clear to be transferred

what is a payoff statement?

amount paid to sellers lender whe a buyers loan comes through

what is a bring down?

title exam after closing to make sure no random liens have come up against the house since the sale

what are the insurances that a lender typically wants the buyer to have?

mortgagees title insurance, fire and hazard insurance

what properties require a 1099 reporting in taxes?

land, permanent structures, condo units, and shares of a coop

what are other names for a closing?

a settlement or a transfer

what is passing papers?

sitting across a table and passing documents around for signatures on a closing

what is closing escrow

when the buyer/seller meet escrow agent to sign the documents individually

who can attend the closing?

buyer, seller, agents, attorneys, lenders reps, and title insurance reps

what is an exchange?

both parties have signed and seller gies over deed and the compensation is paidw

what is escrow closing?

third party coordinates all closing activities

what is the real estate settlement procedures act

requires certain docs and prohibits kickbacks or referral fees

what is a mortgage disclosure improvement act

changes everyones preparation for closing

what does RESPA apply to?

first mortgage liens and second liens on a HELOC, FHA and VA loans as well or those sold in the secondary market

what does RESPA not apply to

land over 25 acres

business or agricultural loans

construction loans

vacant land unless improved upon within 2 years

money back purchases

installment contracts

assumed loans

what is an affiliated business agreement

when settlement, title, lenders, attorneys, and agents may package their services together

when it comes to the escrow account, what can a lender not to?

not force the buyer to hold excess amounts that is required to be held in it, either 1/12th of monthly amount of 1/6th or less for a cushion

what is a mortgage servicing transfer statement?

given if a lender intends to sell a loan and must be told 15 days before transfer

what is the know before you owe

gives borrowers loan estimate and closing disclosure so they are aware of the breakdown

what is a loan estimate

its the interest rate, monthly payment and closing cost estimate

when should a borrower be given a loan estimate

3 days after the loan applicationw

what is the only thing the lender can collect from the borrower before the loan estimate

the credit report fee

what are examples of no tolerance fees

lender charges, underwriting, loan application processing, points, origination fee, and yield spread premiums

what is a 10% tolerance fee?

settlement services, title services, title insurance, recording fees

what are unlimited tolerance fees?

fees that the lender has no control overwh

what are examples of unlimited tolerance fees?

borrower chosen providers, tax impounds, mortgage interest, and homeowners insurancew

what is a closing disclosure?

all charges that will be paid by the buyer and sellerswh

when should the closing disclosure be given?

3 days before closing

what is the your home loan toolkit

given to creditor from mortgagor in loan process and explains how settlement goes and finding the right mortgage

what is MDIA

prevents low interest rate at application and then a surprise higher rate at closing

what is a debit?

a charge at the closingwh

what is a credit?

amount in a persons favor at closingw

what are prorations

division of payments between buyer and seller,wh

who owns the day of closing

typically the seller

what are accrued items

expenses to be prorated owed by the seller but paid by the buyerw

what are prepaid items

prepaid by the seller and given back as credits

what is a banking year

360 days

what is a calendar year

365 days