C

Capacity
The ability of the borrower/co-borrower to repay the loan.

Closing Costs
The costs associated with processing and closing the loan, such as application fees, points, title search, insurance, and credit report.

Closing day
The date on which the title for the property passes from seller to buyer and/or the date on which the borrower signs the mortgage loan agreement.

Co-Signer
A person who signs on the loan but does not have ownership of the property being mortgaged (i.e., a co-signer is not on the title and has no claim to ownership rights in the property). The co-signer is legally bound to the loan, i.e., one that agrees to assume responsibility for a loan if the borrower becomes unable or unwilling to repay the loan.

Collateral
The property, or other assets, that are being secured against the loan to ensure repayment of debt.

Condominium
A form of ownership in which the owner gets title to a housing unit and interest in the common areas; commonly referred to as a condo.

Credit
A reflection of past payment history; a positive amount added to the transaction balance.

Credit Report/Rating
A written report detailing an individual's credit history. This helps the lender decide the credit worthiness of a prospective borrower.