Page 1
Call Option - Co-Signer

Page 2
Collateral - Credit Bureau

Page 3
Credit History - Curb Appeal

Collateral
Collection
Combined Loan-to-Value (CLTV)
Commitment
Community Property
Comparable Value
Comparables
Comparative Market Analysis
Comps
Condemnation
Conditional Commitment
Condominium
Condominium Conversion
Conforming Loan Limit
Construction Budget
Construction Loan
Construction to Permanent Loan
Contingency
Contract
Conventional Loan
Conversion to Convertibility
Clause
Conveyance
Counteroffer
Covenants,Conditions&Restrictions
Credit
Credit Bureau

Collateral
Property used as security for a debt. In the case that the debt is left unpaid the lender has the right to gain ownership of the property.

Collection
A last resort effort of a creditor to recover past-due debts. These types of payments reflect negatively against an individual's credit score.

Combined Loan-to-Value (CLTV)
Calculates the percentage of the amount financed to the value of the property, combining all existing mortgages. For example: An individual purchases a home worth $300,000. S/he finances the home with a first loan of $150,000 and a second mortgage of $50,000. The LTV will be 50% and the CLTV will be 66.67%.

Commitment
An agreement where a lender promises to lend money to a borrower on certain terms and conditions.

Community Property
A way for individuals to hold title to a piece of property. In nine (9) states including Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, this type of holding to property is allowed for married couples. Each partner owns 50/50 to do as they please. If they would like, each partner can will or give their portion of the property to another individual. To read more about different methods of holding title take a look at our Title section in our Library.

Comparable Value
A method of evaluation used to determine the value of an item or property.

Comparables
(aka comps) In real estate this refers comparable sales and comparable properties. This is the most common used method for appraisers to determine the fair market value of a property. In order to use the comparables method the appraiser must use a similar property in size, location, amenities, condition, etc.

Comparative Market Analysis
Another way to describe the method appraisers use to determine a property's fair market value using sale comparisons or comparables.

Comps
An abbreviation for comparables.

Condemnation
(aka Power of eminent domain) A process by which the government seizes private property for public use.

Conditional Commitment
A promise by the lender to lend necessary funds based on the assumption that the loan and borrower meet certain guidelines and conditions.

Condominium
A property where the owner owns the space they occupy in a multi-unit building. These buildings have units belonging to the owner and common areas belonging to the entire association of occupants/owners.

Condominium Conversion
The process whereby rental apartments or units are converted into individual condominiums to be sold as homes to individual owners.

Conforming Loan Limit
Beginning 2006 the upper limit of the conforming loan amount for a single resident, condominium, or townhouse reached $417,000 for the contiguous 48 states and reached $625,500 in Alaska and Hawaii.

Construction Budget
Funds set aside by the builder for the construction of a structure.

Construction Loan
An interim loan used to finance the building of property. Intended to be short term, the lender pays the construction money in stages or draws as the work progresses step by step. Depending on the construction project the loan could lasts from a month to a couple years.

Construction to Permanent Loan
A loan that is created to first finance the construction of a property and upon completion becomes a traditional loan.

Contingency
One or more conditions taht must be satisfied before the sale of a property can be completed including: termite reports, loan approvals.

Contract
(aka Purchase agreement) A document signed by both seller and buyer of a property, approving the price, addendums, and other terms for the property sale.

Conventional Loan
A mortgage not insured by a government agency.

Conversion to Convertibility Clause
A provision in a loan agreement or contract allowing for adjustable rate mortgages (ARMs) to change into fixed rate loans for an additional charge at any time during the life of the loan.

Conveyance
A document transferring title from one individual or party to another individual or party.

Counteroffer
The rejection of a real estate offer by requesting a new set of terms. This is part of the negotiating process during the purchase of a property.

Convenants, Conditions, & Restrictions (CC&Rs)
Rules and regulations for a property, often a larger building with multiple owners. These regulations must be agreed upon by a homeowner's board and filed with a county recorder's office, makig the rules legally enforceable if need be.

Credit
Money given to a borrower by a lender with the understanding there is a schedule of repayment over a period of time. For more information regarding credit refer to the Credit section of our Library.

Credit Bureau
A company that collects, collates, analyzes, and sells information about how individuals handle credit and repayment of said credit. The three major national credit bureaus include Equifax, Experian, and TransUnion.