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What will I pay for a seller's attorney?

Seller's attorney fees in the Western Catskills typically range from $1,000 to $2,500.

What are adjustments or apportionments, and how do they affect my closing costs?

Adjustments are pro-rated cost-sharing calculations at closing for taxes and fuel.

What is an "acceptable offer" and when does it become binding?

In New York, an offer is not binding until both parties sign and deliver the formal contract.

What is an Adjustable-Rate Mortgage (ARM)?

An ARM offers a lower initial rate that adjusts periodically based on a financial index.

What is an adjustment cap?

An adjustment cap limits how much an ARM's interest rate can change at each reset.

What is an adjustment period on an ARM?

The adjustment period is the interval between scheduled rate changes on an ARM.

What is amortization?

Amortization is the gradual repayment of a mortgage through scheduled principal and interest payments.

What is the Annual Percentage Rate (APR)?

APR reflects the true annual cost of a mortgage, including fees beyond the base interest rate.

What is an appraisal, and will it be a challenge in rural areas?

Appraisals in rural areas can be challenging due to limited comparable sales.

What is an assumption of mortgage?

A mortgage assumption allows a buyer to take over the seller's existing loan and its terms.

What is a balloon payment?

A balloon payment is a large lump sum due at the end of certain short-term loan structures.

What is a Certificate of Occupancy (CO)?

A CO confirms a structure meets building codes and is legally permitted for occupancy.

What happens at closing?

Closing is the final meeting where ownership is legally transferred from seller to buyer.

What is a Closing Disclosure?

A Closing Disclosure itemizes all monetary transactions and must be provided three days before closing.

What is a mortgage commitment?

A mortgage commitment is the lender's formal written agreement to fund your loan.

What is a condominium?

A condominium gives individual ownership of a unit plus shared ownership of common areas.

What is a contingency in a real estate contract?

A contingency is a condition in a contract that must be met before the sale can proceed.

What is a conversion clause on an ARM?

A conversion clause lets ARM borrowers switch to a fixed rate at a set point in the loan.

What is a cooperative (co-op)?

In a co-op, residents own shares in a corporation rather than title to a specific unit.

What are covenants, conditions, and restrictions (CC&Rs)?

CC&Rs are recorded rules governing land use and structures that transfer with the property.

What is a credit report, and why does it matter in the mortgage process?

A credit report documents your credit history and directly affects mortgage eligibility and rates.

What is a deed?

A deed is the legal document that formally transfers property ownership from seller to buyer.

What is a due-on-sale clause?

A due-on-sale clause requires the mortgage balance to be paid in full when a property is sold.

What is an easement?

An easement grants another party the legal right to use a portion of your property.

What is an encroachment?

An encroachment occurs when a structure crosses a property boundary onto a neighbor's land.

What is equity in a home?

Equity is the difference between your home's market value and your outstanding mortgage balance.

What is escrow?

Escrow is a neutral arrangement where funds and documents are held until closing conditions are met.

What is an escrow account for taxes and insurance?

A lender-held escrow account collects monthly amounts to cover property taxes and insurance.

What does "fee simple" ownership mean?

Fee simple is the most complete form of real estate ownership, with full title to land and structures.

What is a finance charge?

A finance charge is the total dollar cost of a mortgage loan over its full term.

What is a fixed-rate mortgage?

A fixed-rate mortgage locks in an unchanging interest rate for the full life of the loan.

What is an index on an ARM?

An ARM index is a published benchmark rate used to calculate your adjusted interest rate.

What does a home inspection cover, and is it required?

A home inspection evaluates a property's structure and major systems; highly recommended for rural homes.

What is joint tenancy?

Joint tenancy is co-ownership with a right of survivorship that bypasses probate at death.

What is a lien on a property?

A lien is a creditor's legal claim against a property for an unpaid debt that must be resolved before sale.

What is a lifetime adjustment cap?

A lifetime adjustment cap sets the maximum total rate change an ARM can ever reach.

What is a loan-to-value ratio (LTV)?

LTV is the percentage of a property's value being financed, used by lenders to assess risk.

What is the Mansion Tax?

New York's Mansion Tax is a 1% buyer-paid transfer tax on residential sales of $1 million or more.

What is the margin on an ARM?

The margin is the fixed percentage a lender adds to the index to set your ARM rate at each adjustment.

What is mortgage life insurance?

Mortgage life insurance pays off your loan balance if you die before the mortgage is retired.

What is negative amortization?

Negative amortization occurs when unpaid interest is added to the loan balance, causing it to grow.

What is a mortgage origination fee?

An origination fee is the lender's charge for processing and underwriting your mortgage application.

What is a mortgage point?

A mortgage point is 1% of the loan amount paid upfront to reduce the interest rate.

What is mortgage pre-approval?

Pre-approval is a lender's conditional commitment based on a full financial review of the borrower.

What is a prepayment penalty?

A prepayment penalty is a lender fee for paying off a mortgage before a set period expires.

What is Private Mortgage Insurance (PMI)?

PMI protects the lender when your down payment is under 20% and can be removed once equity reaches 20%.

What is a rate cap on an ARM?

Rate caps limit how much an ARM's interest rate can change per adjustment and over the loan's life.

What is a rate lock?

A rate lock guarantees your quoted interest rate will hold through the closing date.

What is a real estate sales contract?

A sales contract is the legally binding written agreement governing all terms of a property sale.

What is a property survey?

A property survey precisely maps boundaries, easements, and structures on a parcel of land.

What does "term" mean in the context of a mortgage?

Mortgage term is the total repayment period; longer terms mean lower payments but more interest paid.

What is a title insurance policy, and do I need one?

Title insurance protects against past title defects like liens, errors, or undiscovered claims.

What is a Conservation Easement?

permanent legal restriction on land that keeps property in private ownership while limiting development.