Earnest Money Deposit - A “good-faith” deposit submitted with a purchase offer to show that the potential home buyer is serious about buying the house.
Easement - A right of way giving persons other than the owner access to or over a property.
Effective Age - An appraiser’s estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
Effective Gross Income - Normal annual income including overtime pay that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
Eminent Domain - The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.
Employer-Assisted Housing - A program in which companies assist their employees in purchasing homes by providing assistance with the down payment, closing costs, or monthly payments.
Encroachment - An improvement that intrudes illegally on another’s property.
Encumbrance - Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
Endorser - A person who signs ownership interest over to another party.
Equal Credit Opportunity Act (ECOA) - A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
Equity - A homeowner’s financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage.
Escrow - An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.
Escrow Account - The account in which a mortgage servicer holds the borrower’s escrow payments prior to paying property expenses. A borrower typically provides funds that will pay taxes, mortgage insurance, lease payments, hazard insurance premiums, and other payments when they are due.
Escrow Analysis - The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due.
Escrow Collections - Funds collected by the servicer and set aside in an escrow account to pay the borrower’s property taxes, mortgage insurance, and hazard insurance.
Escrow Disbursements - The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.
Escrow Payment - The portion of a monthly mortgage payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Known as “impounds” or “reserves” in some states.
Establishing a Credit Record - It is possible to establish a credit history even if you do not have a traditional credit record that shows credit card payments or payments on a student or car loan. - You can build a nontraditional credit history, for example, by documenting your monthly payments to previous and current landlords; to utility companies for your gas, water and telephone services; and to insurance companies for medical, life, and automobile coverage. - Your lender can provide further details on how you can effectively establish a credit record.
Estate - The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.
Eviction - The lawful expulsion of an occupant from real property.
Examination of Title - The report on the title of a property from the public records or an abstract of the title.
Exclusive Listing - A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.
Executor - A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. “Executrix” is the feminine form.
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