Loan Terms and Definitions (C)
Capital Expenditures: Money spent on improvements to raw land, buildings, machinery, and other expenditures.
Capital Gains: Capital gains are profits made on the sale of real estate, stocks and bonds, and other assets. The actual gains are made from the sales price minus the amount owed, the cost to sell, and or other deductible expenses.
Capital Loss: Capital loss is the money lost on the sale of stock, bonds, real estate, or other investments.
Cash Flow: The money received after deductions of operating expenses and loan payments involving investment properties or other business ventures. Cash flow can be positive or negative.
CC&R'S (Covenants, Conditions, and Restrictions): CC&R's are restrictions limiting certain uses, improvements, or other events that may have an effect on property or areas surrounding the property.
Certificate of Eligibility: Certificate issued by the Veteran's Administration confirming that the veteran is eligible for a V. A. insured loan.
Chain of Title: The chronological order of conveyed ownership of a particular property dating back to the original owner.
Closing Costs: Closing costs are the fees and expenses paid by the buyer and seller to facilitate the closing of an escrow in which property is being bought, sold or traded. These fees are also called escrow fees or settlement costs.
Collateral: Word sometimes used as a pledge of security as in a promissary note used as a pledge for a loan on real property.
Co-Mortgagor: A co-mortgagor is an individual who helps qualify for a loan and signs a binding contract jointly obligating himself to being responsible for the repayment of the loan.
Conforming Loan: A conforming loan is one that is less than or equal to the maximum loan limits established by Freddie Mac and Fannie Mae.
Contingency: A stated event that must occur before the contract can be considered binding.
Conventional Loan: Loan issued by a bank, savings and loan, or mortgage company that is underwritten using specific guidelines developed by Fannie Mae or Freddie Mac.
Counter Offer: A counter offer is given in response to an offer that is not totally acceptable. It states the points of contention or other information that would make the transaction acceptable to the seller.
Credit: Credit is what an individual develops to show his financial worthiness and is a determining factor in whether or not financial obligations were met on time or are still being met.
Credit Report: A report showing an individuals payment history and how the individual meets financial obligations. Today, there are a number of credit reporting companies but the three most often used are Equifax, TransUnion, and Experian.
Credit Score: A credit score is derived from an individuals repayment history and mathematically formulated to give creditors a good reference as to the amount of risk involved in giving credit to the individual.
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