Cap - A provision limiting how much the interest rate or payments can increase on an ARM

Cash Reserve - Amount of money a buyer has left over after closing. Some lenders may require borrowers to have cash reserve equal to two mortgage payments.

Clear Title - A title that is free from liens and or legal questions as to who owns the property

Closing - Finalization of a mortgage.

Closing Costs - Expenses incurred by the buyer during transfer of ownership of a property.

Community Property - Property acquired during a marriage by husband and wife. Each spouse has equal rights to the property.

Contingency - Condition that must be met before a contract is legally binding.

Conventional Home Loan - A home loan that is not insured or guaranteed by the federal government.

Convertible ARM - An adjustable rate mortgage (ARM) that may be converted to a fixed rate loan under specified conditions.

Covenant - Obligates or restricts the borrower and if violated can result in foreclosure.

Credit Report - A report generated by a credit bureau that shows an individuals credit or repayment history over time. Used by lenders to determine creditworthiness.