Deed of Trust: A legal document evidencing the existence of lien against real property, securing the repayment of a loan, typically made for the purchase of that same property. Deeds of Trust are recorded in the circuit court for the jurisdiction where the real property is located.

Escrow, Lender: Funds collected at closing and with every monthly mortgage payment that is held by the lender to pay the real estate tax and homeowners insurance for the property over the life of the loan

Good Faith Estimate: A document prepared by a lender showing what a borrower may reasonably expect to pay at settlement.

Hazard Insurance: Also called homeowners insurance, protects a homeowner and lender from losses caused by damage to or destruction of a property.

HUD-1: A standardized form detailing the charges, credit and debits in a real estate transaction.

PITI: Principal, interest, taxes and insurance; the four components of a monthly mortgage payment.

Planned Unit Development (PUD): A real estate project in which individuals hold title to a residential lot and home while the common facilities are owned and maintained by a homeowners' association for the benefit and use of the individual PUD unit owners.

Promissory Note: A legal document evidencing the existence of debt and the terms of repayment.

Recordation: The act of filing a document (e.g. a deed or mortgage) in a circuit court land records to put the public on notice that it exists.

Stamp Taxes: Taxes collected by the county/city and state for the recordation of documents.

Subordination: The act of making an existing mortgage, secondary in priority to a new mortgage. Borrowers refinancing their primary mortgage can normally maintain an existing home equity loan so long as the home equity loan lender agrees to have its mortgage subordinated to the new primary mortgage.

Survey, House Location: A scale drawing of a parcel of real property depicting the improvements and other characteristics.

Truth in Lending Disclosure: A document prepared by a lender and required by law to be provided to a borrower before and at settlement summarizing the terms of the loan.

Warranty Deed: A legal document evidencing the transfer of title to real property, as well as the nature of ownership.