Common Real Estate Terms & Mortgage Terms Explained - Part 3

Here is the third part in our series of definitions for commonly used real estate terms and mortgage terms (or terminology relating to the real estate/mortgage industry):

Comparable Market Analysis (CMA)
A comparable market analysis is a comparison of the prices of similar houses in the same general geographic area. A buyer or seller can use a CMA to help determine the true value of a property. A CMA is far more reliable than simply looking to see what other home sellers are asking for their properties. What people ask for and what they eventually get can be poles apart.

Closing
This is the process that effects the final transfer of the deed from the seller to the buyer. Closing also finalize all aspects of the mortgage of the property.

Closing Costs
These are the funds required at the time of closing (not to be confused with the down payment which is additional). Closing costs can include: loan origination fees, discount points, recording fees, pre-paids and Attorney fees. These closing costs can often equate to around 3% to 5% of the price of the property.