Home
PardeeHomes
BROKERSCOMMERCIALCAREERSCONTACT
ESPAÑOL
HOMEOWNERS
BuyingSmart Homebuyers Glossary
Talk the talk with our Homebuyers Glossary.
Does home-buying vocabulary make your head spin? Scan through our handy homebuyers glossary to learn the lingo and talk like a pro. That’s a good formula for getting the home you want on your own terms.

Adjustable Rate Mortgage (ARM)
A type of loan where the interest rate changes periodically up or down, usually once or twice a year
Amortization
The process of reducing a loan in equal installments of principal and interest
Appraisal
An estimate of the fair market value of a land parcel and any improvements at a given point in time
Annual Percentage Rate (APR)
The sum of finance charges (interest, loan fees, etc.) expressed as a percentage of the loan amount
Assessments
Special taxes imposed on a property benefiting from local improvements such as street lighting or flood control
Buy Down
An incentive offered by a builder that allows you to lower your interest rate by putting up a certain amount of money
BuyingSmartTM
A Pardee Homes program designed to make purchasing a new home easier, more understandable and more satisfactory
Cap
The limit on an interest rate for an adjustable rate mortgage; applies to each adjustment or over the life of the mortgage
Closing Costs
Your costs as a buyer such as points, mortgage insurance, homeowner’s insurance, prepayments for property taxes, etc. paid at the time of closing (Ask Pardee Home Loans whether you qualify for reduced closing costs!)
Closing Date
The day you do a dance of joy, jingling the keys to your new home; officially known as the date escrow closes and your deed and mortgage are recorded with the county
Closing Document
The financial disclosure statement that accounts for all of the funds received and expected at the close of escrow
Community Facilities District Assessment
A long fancy word for a special tax that varies by district; see Mello-Roos
Construction Orientation
A personal tour of your new home with a Pardee Construction Superintendent to ensure your selected options are installed correctly
Contingency
A condition that must be met, such as selling your current home, before your contract to purchase a new home becomes binding
Conversion Clause
A provision that allows you to change an adjustable rate mortgage to a fixed rate, usually set at the prevalent interest rate and for an additional fee
Covenants, Conditions and Restrictions (CC&Rs)
A document with terms you agree to live by when owning a home in a neighborhood that has a Homeowner’s Association
Curb Appeal
The home-shopping equivalent of love-at-first-sight; many Pardee shoppers have reported the following symptoms: a pounding heart, racing pulse, big smile
Deed
A legal document that transfers real property from seller (Pardee Homes) to buyer (you)
Down Payment
The difference between the sale price and the loan amount, which must be paid in cash by the buyer
Earnest Money
Money the buyer (you) gives the seller (Pardee Homes) to secure the Binder; these funds are later applied toward the purchase price of your home
ENERGYSMARTTM
An energy efficiency program Pardee Homes offers on select homes, elevating construction standards to provide the potential for tangible savings on monthly energy bills; see also LIVINGSMART®
Equity
The value of a property exceeding the amount owed on it
Escrow
A procedure in which a third party acts as a stakeholder for both you and Pardee Homes carrying out closing instructions and assuming responsibility for paperwork and funds
Good Faith Estimate
An approximation supplied by the lender of all your closing costs
Grantee
The buyer of a deed (That’s you!)
Grantor
The seller of a deed (That’s us!)
Homeowners Association (HOA)
An association formed by Pardee Homes and managed by homeowners like you for the purpose of maintaining the quality of your neighborhood
Homeowner’s Orientation
A room-by-room tour of your new Pardee home, during which we provide helpful product and warranty information and familiarize you with the working functions of your home
Home Warranty
The express limited warranty that Pardee Homes provides concerning the construction of the home
Housewarming Party
A celebration of your new home with family and friends during which you exchange great food and beverages for household gifts
Impound Account
A special account held by the lender on your behalf, from which your property taxes and insurance will be paid
Inspection Report
A written record of a property's condition, including the foundation, interior, roof, kitchen and baths, foundation, heating and air conditioning
Legal Description
A description of real property that usually refers to recorded maps, surveys and other public documents to designate the location of the property
LIVINGSMART®
A contemporary concept in homeownership developed by Pardee Homes, combining state-of-the-art features and options for your home that are environmentally sensitive and energy conscious while providing for healthy living; see also ENERGYSMARTTM
Lock-in
A benefit Pardee Home Loans may offer Pardee homebuyers, freezing the interest rate for their loan for a certain period of time
Mello-Roos
A legislative act in California that allows a Community Facilities District Assessment to ensure critical facilities like schools, roads and utilities are available to serve the first homeowners in a new area
Moving
A process whereby more belongings than you need are eagerly packed and transported to their new home; a Yard Sale may expedite this process
Origination Fee
A lending fee (such as 1% of the loan amount) charged to offset the costs of evaluating, preparing and submitting a proposed mortgage loan
Personal Property
Anything you own (such as furniture, stocks, bonds, etc.) that is not land or permanent improvements affixed to the land
PITI
Principal, Interest, Taxes and Insurance; a quick way to reference your combined monthly house payment
Points
A one-time charge assessed by the lender at closing for the cost of the loan; each point is equal to 1% of the loan amount
Power of Attorney
A written authorization allowing a selected individual to perform specified acts on your behalf
Preliminary Title Report
A report from the title company regarding the current condition of title on the property you intend to purchase
Prepayment Penalty
A fee imposed for paying off part or all of a loan before its maturity
Prequalification (Prequal)
A preliminary review of your finances by Pardee Home Loans as an important step in the purchase process with Pardee Homes
Private Mortgage Insurance (PMI)
A type of insurance that is usually required by a lender if your Down Payment or Equity is less than 20% of the loan value; it insures the lender against loss if you were to default on your mortgage
Property Taxes
Taxes you will pay based on the assessed value of your home for community services such as schools, public works, and other costs of local government (may be included with your monthly mortgage payment)
Purchase Agreement
A written document confirming your decision to buy your new home and Pardee Homes’ decision to sell under stated terms and conditions
Recordation
Filing documents, such as your new deed and mortgage, for record in the county recorder’s office
Satisfaction
Fulfillment of your greatest desires and an assurance of lasting quality; the state-of-mind Pardee Homes hopes to provide all our buyers
Settlement Statement
A list of the money paid out and received by the buyer (you) and seller (Pardee Homes) at closing
Title
Evidence of a person’s right to ownership in real property
Title Insurance Policy
Protection for you and your lenders against loss of interest in property in the event that there are legal defects in the Title
Truth in Lending
A statement that explains the terms of your loan
Yard Sale
A temporary relocation of Personal Property to your front yard for the purpose of selling unused items before Moving to a new home




Where smart solutions live.
FIND My Home | DESIGN My Style | FINANCE My Dream | BUY My Home | RESPECT Our Planet | ABOUT Pardee Homes

Homeowners | Brokers | Commercial | Careers | Contact | Casas Nuevas
New Home Communities: Santa Clarita / Los Angeles |  Moorpark |  San Diego: Pacific Highlands |  Carmel Valley |  Del Mar
Orange County: Ladera Ranch |  Yorba Linda |  Inland Empire: Chino | Lake Elsinore |  Beaumont
Las Vegas: Northern |  Southern |  Henderson |  Eastern |  Luxury Homes: Lake Las Vegas |  Coyote Springs

Moving to Another State? Check Out Our Affiliated Builders

Sitemap | Home
PRIVACY POLICY | Important Legal Declaration | EHO Legal Disclaimer
© 1998 - 2008 Pardee Homes (New Homes and Real Estate from an Award Winning Home Builder)