Home Buyer's Guide- Seattle 2022

CCR’s – Covenants, Conditions, and Restrictions which describe requirements and limitations for using the property. It is possible to have CCR’s without an HOA, but not an HOA without CCR’s. TITLE INSURANCE – Protects you and the lender from losses if a property ownership dispute occurs. FINAL SETTLEMENT STATEMENT – A document given to borrowers at closing that itemizes services and fees charged to both parties and monies due to the seller at the time of closing. The Buyer and seller receive their own itemized final statements. EASEMENT – The rights granted to others to use the property for specific purposes. Must be recorded to be valid. POSSESSION – Agreed upon date the buyer will take possession of the home. This typically occurs the same day as the transaction closes unless negotiated otherwise. DTI – Debt to income ratio is used by the lender to determine how much a buyer can afford as a monthly mortgage payment. DTI is based on income and other financial obligations such as student loans, auto payments, credit card debt, etc. RESERVES – An escrow account, sometimes called an impound account, set up by the mortgage lender to pay property taxes twice a year (April and October) and homeowner’s insurance once a year. These make up the additional portion of your monthly payment beyond the principal and interest payment.

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Home Buyer’s Guide - Seattle