Escrow and Closing

An appraisal contingency is a contract condition that protects the buyer if the property's appraised value does not support the agreed deal.

A contingency is a contract condition that must be satisfied, waived, or resolved for a home purchase to proceed as planned.

Mortgage loan produced when the promissory note is created and signed electronically, even if some other closing documents remain paper.

An escrow holdback is lender-approved money withheld at closing until specified repair or completion work is verified.

Projected monthly amount for taxes, property insurance, and other charges expected to be paid from mortgage escrow.

Projected payment total combining principal and interest with applicable mortgage insurance and estimated escrow.

A mortgage contingency is a contract condition protecting the buyer if financing cannot be obtained on the agreed terms.

Loan Estimate and Closing Disclosure table showing expected principal, interest, mortgage insurance, escrow, and total payment phases.

Seller concessions are seller-paid contributions toward the buyer's closing-related costs, subject to transaction and loan-program limits.

Closing allocations that divide recurring property expenses or income between buyer and seller according to their periods of responsibility.

A government charge for filing and indexing a deed, mortgage, release, or other transaction document in public records.

Escrow is a neutral holding arrangement used to manage money or documents until mortgage and purchase conditions are met.

An escrow waiver allows the borrower to pay certain property charges directly instead of funding them through a lender-managed escrow account.

Good funds are closing funds accepted as collected and available for timely mortgage settlement and disbursement under applicable requirements.

Closing instructions direct the settlement party on document execution, funds, title, recording, and lender approval requirements.

A closing package is the coordinated set of loan, disclosure, title, escrow, and affidavit documents prepared for mortgage signing.

Disbursement is the settlement party's payout of collected mortgage-closing funds to sellers, lienholders, service providers, and other recipients.

Closing document identifying the expected first mortgage payment amount, due date, and initial payment instructions.

Funding authorization is the lender's final permission for the settlement party to release mortgage proceeds after required closing checks are complete.

Disclosure projecting the starting escrow balance, monthly collections, and scheduled payments for escrowed property expenses.

Closing affidavit used to connect a borrower's verified identity with name variations found in mortgage and title records.

Closing affidavit used to confirm a borrower's signatures or signature variations across mortgage documents.

An aggregate adjustment is a negative Section G amount that prevents item-by-item escrow reserves from overfunding the combined account.

An application fee is an upfront lender charge for beginning mortgage processing after the borrower chooses to proceed.

An appraisal fee is the mortgage charge for obtaining an independent property valuation used in collateral review.

Services You Can Shop For is the Loan Estimate section for required third-party services where the lender permits provider choice.

Services You Cannot Shop For is the Loan Estimate section for required third-party services whose providers are selected through the lender.

Cash to close is the net amount a borrower must provide at settlement after costs, deposits, credits, and financing are reconciled.

A credit report fee is the mortgage charge for obtaining borrower credit data used in qualification, pricing, and underwriting.

An earnest money deposit is buyer money held under a purchase contract and usually credited toward the transaction at closing.

An electronic signature records a borrower's intent to sign an eligible mortgage document through an approved digital process.

A flood certification fee covers the lender's determination of whether a mortgaged property is in a mapped special flood hazard area.

A hybrid closing combines electronic execution of eligible mortgage documents with paper, wet-signed, or separately notarized documents.

The one-time closing charge for a title policy protecting the mortgage lender's covered interest in the property.

Loan Costs is the disclosure category for origination charges and required third-party services connected with obtaining a mortgage.

Other Costs is the mortgage disclosure category for government charges, prepaids, initial escrow funding, and transaction items outside Loan Costs.

The one-time closing charge for a title policy protecting the homeowner's covered ownership interest.

Prepaid homeowners insurance is an advance premium for property coverage that must be active when the mortgage transaction closes.

Prepaid items are advance collections at closing for interest, insurance, taxes, or similar expenses covering an identified period.

Prepaid property taxes are Section F closing amounts for qualifying tax obligations due at or shortly after settlement.

A processing fee is a lender origination charge for organizing and moving a mortgage file through review and closing.

A mortgage-closing notarization conducted through live audio-video communication and an approved electronic platform.

Settlement costs are the upfront charges for obtaining the mortgage, transferring the property, and completing the closing transaction.

A settlement fee pays a closing provider to coordinate documents, funds, payoffs, signatures, disbursement, and related settlement work.

A survey fee pays for property measurement and mapping used to evaluate boundaries, improvements, and title-related issues.

A tax service fee covers property-tax status research or monitoring performed for a mortgage lender or servicer.

A closing charge for an endorsement that adds, changes, or clarifies specified coverage under a title insurance policy.

A one-time closing charge for a lender's or owner's title insurance policy, separate from title search and settlement fees.

A title search fee covers the public-record review used to identify ownership, liens, and other title issues before closing.

A state or local government charge tied to transferring real property or recording a mortgage transaction.

An underwriting fee is a lender origination charge associated with evaluating the borrower, property, and mortgage against approval requirements.

A wet signature is a handwritten ink signature on a paper mortgage document, often used when electronic signing is not enough.

A notary signing agent is the closing professional who verifies identity and witnesses mortgage-document signatures.

A closing attorney is a lawyer who conducts, reviews, or provides legal oversight for a mortgage settlement under local practice.

The HUD-1 itemizes settlement charges for reverse mortgages and remains important when reading older mortgage closing files.

An initial escrow deposit is the Section G closing amount that establishes reserves for future escrowed taxes, insurance, and related bills.

Mortgage closing wire fraud uses impersonation or compromised communications to redirect a buyer's funds to a criminal account.

Closing is the final transaction process in which mortgage documents, funds, settlement conditions, and ownership transfer are completed.

Closing costs are the upfront Loan Costs and Other Costs of obtaining a mortgage and completing the property transaction.

The closing date is the contract target for completing settlement, subject to disclosure, funding, title, and other final requirements.

Final five-page mortgage disclosure showing settled loan terms, projected payments, closing costs, and cash to close.

An escrow account is a lender-managed account that collects part of the monthly payment for taxes, insurance, and related housing charges.

Mortgage escrow and closing terms that explain disclosures, cash needs, deadlines, and final transaction mechanics.

A final walk-through is the buyer's last check of the property before closing to confirm its expected condition and status.

Funding is the lender's release of mortgage proceeds for disbursement after final closing requirements are satisfied.

Early three-page mortgage disclosure showing projected loan terms, payments, closing costs, and comparison figures.

A settlement agent is the person or company that coordinates the closing process, documents, and money movement for a real-estate transaction.

Closing step where the borrower and other parties sign the final mortgage and transfer documents before funding and recording finish the deal.

A title company researches ownership, helps issue title insurance, and may coordinate settlement and recording for a mortgage closing.

A wire transfer electronically delivers verified mortgage closing or payoff funds between financial institutions.