Insight Into Some of the Most Used Real Estate Terms
I know how difficult it is when you hear a word relating to your real estate transaction and you aren't sure what it means in layman terms. Here is a list of the most used real estate terms and what they mean in plain english.
If you have any other words that you have heard and "needed to know more about" please let me know and I will add it to this list.
The repayment of principle and interest through monthly mortgage payments
Appraisal
The estimated value a of a piece of real estate by a licensed Real Estate Appraiser
ARM - Adjustable Rate Mortgage
This is a mortgage rate that fluctuates. The interest rate charged is flexible and adjusts with the "current index"
Balloon Mortgage
This is generally a short term mortgage whereby a lower monthly payment is made and a final large payment is made at the end of the mortgage term.
Comparable Marketing Analysis (CMA)
A comparison of properties that have sold in the same | similar area as a subject property in order to determine the likely selling price for the property.
Contingency
A condition that has to be met prior to the closing
This term is usually used to describe the visual impact of a home from the street scape.
Dual Agent
Buyer and Seller are represented by the same agent.
Earnest Money Deposit
Good faith money offered in a transaction as a downpayment on a property
Exclusions
Items excluded from the purchase of a property
FHA Loan
Federal Housing Administration loan is an mortgage insurance the the purchaser would pay in exchange for a benefit of paying a lower down payment and would guarantee the lender security incase the purchaser defaults on his mortgage payment
Hazard Insurance
Insurance on real estate to protect the home against damages that may affect its value
Home Owners Insurance
Covers the personal property against theft, damage or loss
Home Inspection
An inspection of a homes by a qualified home inspector to determine the condition of a property prior to proceeding with a purchase of a property.
Lien
When a entity has a legal claim against a persons property and the claim is registered against the title of the property. e.g. Builders lien, tax lien,
Loan to Value Ratio (LTV)
The loan amount offered determined by the appraised value of a property
Pending
A term used when real estate has sold but not yet closed
Prequalified for A Mortgage
When a person goes to a mortgage company to find out how much mortgage they qualify for before actively looking for and buying a property
PITI
Principal Interest Taxes and Insurance and these make up the monthly mortgage payment
PMI
Private Mortgage Insurance. This is a private insurance in favor of the lender insuring your monthly mortgage payment if you do not have a full earnest money deposit and need a higher mortgage than the regular 80%
Special Assessment
- A Home Owners Association may levy the homeowners in a subdivision for improvements or repairs needed
- A local authority can levy homeowners in an area when an upgrade or repair is needed to benefit the homeowner
TRID
Know before you owe rule - All fees and the exact amount of a monies due must be disclosed by a lender prior to your accepting the conditions of mortgage or loan. Read More Here
VA Loan Guarantee
A mortgage guarantee from the Department of Veteran Affairs
Walk Through
A visit by the purchaser of a property on day of closing to ensure that home is in the condition in which he purchased the property and to see that the items to remain with the property are in fact there.
If you are looking for a home or considering selling, I would be delighted to assist you. My many years worth of experience as a real estate agent will benefit your smooth transaction.
Call Karen Browder 704-534-9334 or email Karen@KarenBrowder.com
Call Karen Browder 704-534-9334 or email Karen@KarenBrowder.com
| Terrell | Sherrills Ford | Denver NC
