Understand Real Estate Terms

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Some Important Real Estate Terms
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Buying or selling a home can be a complicated and
a confusing process, especially for the
first-timers.  Throughout the process, you would
encounter unfamiliar terms. Having a basic
knowledge of such concepts will surely give you
peace of mind and may also help you save
considerably in the end.
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A
Appraisal The evaluation of a property on its
price by a licensed appraiser based on recent
comparable property sales.  The appraised value
is used by a bank to determine the lending limit
for the property.
B
Backup Offer Secondary offer on home that is
under contract that becomes active if the primary
contract offers through.
c
Contingent Offer Offer is accepted by the
seller, but certain conditions must be met before
the sale is final.
Down Payment It is the amount of money that a
buyer pays upfront while signing the sale
contract and is generally 10 of the purchase
price..
D
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E
Escrow neutral third party that holds fund from
the buyer and distributes them when all
conditions have been met.
Federal Housing Administration(FHA) Govt.
agency that insures loan designed for
low-to-moderate income borrowers
F
Homeowners' Associations Management
organization within a community, subdivision, or
neighborhood that creates and enforce rules for
property within its jurisdiction.
H
Good Faith Estimate (GFE) Provided by a lender
to a borrower, GFE was an estimate of fees due at
closing. New mortgage rules in 2015 replaced this
form with one called a loan estimate.
G
Inspection An examination of a property and its
system performed by a qualified professionals,
usually before the sale of a home.
I
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N
.
Jumbo Mortgage Mortgage exceeding the
confirming-loan limit, commonly used for luxury
home purchases.
J
Net Proceeds Amount received by the seller at
closing after all other costs have been deducted.
K
Key Rate Interest rate set by the federal govt.
that determines the cost to borrow money, in
case, a mortgage to buy a new home.
Loan-To-Value(LTV) Risk assignment ratio used by
lenders to calculate, divide the mortgage amount
by the appraised value.
O
L
.
Open Houses Event hosted by a listing agent to
showcase a home to potential buyers.
Multiple Listing Services(MLS) Data base of real
estate agents to list and market for sale for
homes.
M
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Preapproval Latter letter including a lender is
willing to loan a specific amount of money for
home purchase preapproval does not guarantee
loan.
P
Seller Discloser document completed by the
seller disclosing the propertys history and
defects.
S
Quitclaim Deed deed transferring property rights
without any validation of ownership, typically
used between spouses and family members.
Q
Real Estate Owned(REO) Property repossessed
property owned by a lender after an unsuccessful
sale at auction.
R
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Title the right to ownership of real property
recognized and protected by the law.
T
VA Loan Mortgage loan for veterans and their
spouses, made by private lenders and guaranteed
by the U.S. Government.
V
Zero Lot Lines residence built very close to or
directly on the property line.
Z
Walk-Through final inspection conducted before
a home sale is final.
W
X Marks The Spots where you sign on the dotted
line for your dream home!
X
Yield Spread Premium (YSP) Amount a lender
pays a mortgage office for selling a loan with a
higher interest rate than the par rate.
Y
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To know more contact us-
31620 Railroad Canyon Road, Canyon Lake, CA 92587
http//superzinggs.com
[phone]
realestate_at_superzinggs.com
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