S

Sales Agreement

Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.

Second Mortgage

An additional mortgage placed on a property that has rights that are subordinate to the first mortgage. A second mortgage is a lien in which you are given a lump sum amount that you pay off in installments over a specified period of time. Home improvement and debt consolidation loans are considered second mortgages.

Security

This refers to the address of the property being pledged as security for your loan.

Settlement (or Closing)

The settlement or closing is the conclusion of your real estate transaction. It includes the delivery of your security instrument, signing of your legal documents and the disbursement of the funds necessary to the sale of your home or loan transaction (refinance).

Settlement Costs

Also known as closing costs, these costs are for services that must be performed to process and close your loan application. Examples include title fees, recording fees, appraisal fee, credit report fee, pest inspection, attorney's fees, taxes, and surveying fees.

Settlement Cost (HUD guide)

HUD - published booklet that provides an overview of the lending process, and that is given to consumers after completing a loan application.

Single Family

It is a residence that houses one family.

Site Condominium

A detached single-family dwelling characterized as a site condominium by the way it is platted by the builder, however it is still considered a condominium.

Structural Improvements

A "Structural Improvement" is any permanent improvement made to your property that is not strictly for decorating purposes. Examples include: additions, new flooring, kitchen or bathroom upgrades, new windows and central air. Swimming pools are considered structural improvements only if they are in ground and your property is in a year round warm weather climate.

Subject Property

The home that you intend to obtain the mortgage on is called the subject property.

Survey

A mortgage survey is a bird's eye sketch of your property that shows the boundary lines of your lot, and details any encroachments between you and your neighbors.

Survey Fee

The survey fee covers the cost of the survey.

Sweat Equity

Value added to a property in the form of labor or services by the owner rather than by cash.