GLOSSARY A Acceleration Clause A provision in a mortgage that gives the lender the right to demand payment of the entire principal balance if a monthly payment is missed.
Acceptance An offeree's consent to enter into a contract and be bound by the terms of the offer.
Additional Principal Payment A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.
Adjustable Rate Mortgage (ARM) A mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index.
Adjusted Basis The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.
Adjustment Date The date on which the interest rate changes for an adjustable-rate mortgage (ARM).
Adjustment Period The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).
Administrator A person appointed by a probate court to administer the estate of a person who died intestate.
Affidavits A formal sworn statement of fact. As part of the closing process, you're likely to sign numerous affidavits. You may be required, for example, to sign an affidavit of occupancy. It states that you will use the property as a principal residence. Or, you and the seller may have to sign an affidavit stating all of the improvements to the property required in the sales contract were completed before closing. Your lender can provide additional information regarding any of these documents you will sign.
Affordability Analysis A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, and available funds, along with the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that you might expect to pay.