The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage.

The amount of the buyer’s liquid cash remaining after making the down payment and paying all closing costs.

Covenants, conditions and restrictions. A document that controls the use, requirements and restrictions of a property.

The lender's approval of a VA loan, which is usually good for up to six months.

A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.

Personal property.

The financial disclosure statement that accounts for all of the funds received and expected at the closing, including deposits for taxes, hazard insurance, and mortgage insurance.

The period during which a loan approval is valid.

A form of real estate ownership where the owner receives title to a particular unit and has a proportionate interest in certain common areas. The unit itself is generally a separately owned space whose interior surface (walls, floors and ceilings) serve as its boundaries.

A condition that must be satisfied before a contract is binding. For instance, a sales agreement may be contingent upon the buyer obtaining financing.

A provision in some ARMs that enables home buyers to change an ARM to a fixed rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed rate mortgages. This conversion feature may cost extra.

A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.

Certified Residential Broker. To be certified, a broker must be a member of the National Association of Realtors,® have five years experience as a licensed broker and have completed required Residential Division courses.

Certified Residential Specialist.