We want to hear from you and do everything we can to be of assistance to you! Realtor®: A real estate agent who is a member of the National Association of Realtors (www.realtor.com) is allowed to call him or herself a Realtor®. Credit reports generally include information on loans, credit cards, and other bills and accounts, as well as a record of the consumer's addresses and employers. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. I will never forget what they did for me. You can also ask your real estate agent or lender if there are other terms you are not familiar with, so you understand every part of the home buying process. Disclosure: The making known of a fact that had previously been hidden; a revelation. Provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying. Adjustable-Rate Mortgage – The interest rate is usually static, but there are adjustable-rate mortgages available as well. In some states, this takes the form of a full contract, which the seller would need only sign to put the wheels into motion toward the closing. Our Accredited Buyer’s Representatives understand your perspective and are committed to helping you achieve your goals. Buying a home is a major endeavor and enjoying a successful real estate transaction requires knowledge and experience. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Home Buying-Selling Dictionary Created by FindLaw's team of legal writers and editors | Last updated June 20, 2016 Whether you are thinking about buying or selling a home, the "Home Buying-Selling Dictionary" can provide you with an understanding of a number of common words and terms used in a typical real estate transaction. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. House closing: The final transfer of the ownership of a house from the seller to the buyer, which occurs after both have met all the terms of their contract and the deed has been recorded. For example, if you offer $750,000 for a house, and the seller replies that he wants $775,000, the seller has rejected your offer and has made a counteroffer. For many, the terminology used by estate agents and mortgage lenders can be confusing, especially if you are new to the property market. StateALAKAZARCACOCTDCDEFLGAHIIDILINIAKSKYLAMEMDMAMIMNMSMOMTNENVNHNJNMNCNDOHOKORPARISCSDTNTXUTVTVAWAWVWIWY. A home-equity loan, also known as a second mortgage, is a closed-ended, secured loan with your home used as collateral. Home Buying Terminology: A Cheat Sheet. They truly helped me achieve the American dream of home ownership! You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Annual percentage rate (APR): A yearly interest rate that includes upfront fees and costs paid to acquire the loan, calculated by taking the average compound interest rate over the term of the loan. (You're not in contract until someone actually signs on to an offer or counteroffer.). Our experience with FHL was exceptional, from our initial meeting to the actual closing. Condominium: A type of real property ownership in which each owner holds title to his or her individual unit and shares ownership jointly of common areas such as driveways, parking, elevators, outside hallways, and recreation and landscaped areas. Learn the key terminology--and, in some cases, jargon--involved in buying a house. September 1, 2018 Bruce Garber Blog Home. Appraisal – An appraisal is done to determine the home’s value and is often required by the mortgage lender. (Compare with nonrecurring closing costs, defined above.). High credit scores (over 700) indicate less risk that you will default on payments, and low scores (under 400) indicate potential problems. You may come across these terms when you are in the process of buying a low cost affordable home … We hear these terms on a daily basis but for most clients it can be … My sister had refinanced with Mike and Brian so I gave them a call when I was looking to purchase my first home. Everyone uses it from your real estate agent to your bank loan manager and the home seller. InterContinental Capital Group, Inc. DBA Fellowship Home and Fellowship Home Loans is Registered with the Nationwide Mortgage Licensing System NMLS ID #60134. The monthly payment for a mortgage is known as the PITI, which stands for principal, interest, taxes, and insurance. Real estate is also called real property. Share on Twitter Tweet. Common areas in condominiums are not individually owned by the residents, but shared by percentage interest or owned by the management organization. Real estate agent: A foot soldier of the real estate business who shows houses and does most of the other nitty-gritty tasks associated with selling real estate. Buying a home shouldn’t be rocket science. These can vary but typically include things like the house passing the inspection. Equity – the difference between the mortgage owed on your home and the value of your property; Exchange of contracts – the point in the process of selling and buying a home when both parties become legally bound to complete the deal and can no longer change their minds without financial repercussions You just bought a home. It’s important for this to be as low as possible to help you save money in the long run on the cost of having a mortgage. Fellowship Home Loans is OPEN during this challenging time and welcome the opportunity to serve you. The. Title report: The written analysis of a real estate title search, including a property description, names of titleholders and how title is held (joint tenancy, for example), tax rate, encumbrances (mortgages, liens, deeds of trust, recorded judgments), and real estate taxes due. Credit score. Share on Facebook Share. There are, however, some factors that may affect these definitions: Terms are defined as they are commonly understood in the mortgage and real estate industry. What is PITI? You just bought a home. There are ways to improve one's score. Share on LinkedIn Share. Buying a home shouldn’t be rocket science. GLOSSARY OF AFFORDABLE HOME OWNERSHIP TERMINOLOGY . In many states, a home seller must disclose material physical and other defects in the house within his or her knowledge, such as a leaky roof or potential flooding problem; and, in all states, by federal law, sellers must disclose the presence of lead-based paint hazards in buildings constructed before 1978. Your home or the property you wish to sell or buy. Settlement Statement (aka "HUD"). I was very unfamiliar with the process of course and very nervous of course. Our goal is to lean on our values to deliver the American Dream to as many wonderful people as possible. This can include fees for an appraisal, title fees, and more. Understanding Home Buying Lingo and Terminology. Consent may be revoked at any time and is not required for service. For a more lighthearted look at real estate ad language, see What "As Is" and Other Real Estate Marketing Terms Really Mean . Contingencies – When placing a bid on a home, there will likely be some contingencies, which are conditions that must be met for the sale to go through. Depending on the terms of the ARM, the interest rate could go up or down during the time you have the mortgage. Whether you’re looking to lend money to buy a home, a car, or pay for school, you want your interest rate to be as low as possible so you end up paying less over time. Home Buying – Glossary of terms . Finding out the amount that can be borrowed and spent to purchase a home is crucial. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Common interest developments (also known as community interest developments or CIDs) are managed by homeowners' associations. To help you as you journey through the homebuying process, we have compiled a list of definitions to common terms you may encounter as you shop for your new home. Bryan was in constant communication and never failed to follow up. Most agents are completely dependent upon commissions from sellers for their income. Members typically pay monthly association dues. When you’ve got a pre-approval, and you’re looking for a home, some of the terms you may hear include the following. Fixed rate mortgage: A mortgage loan that has an interest rate that remains constant throughout the life of the loan, usually 15 or 30 years. Closing on the home is the process of paying for the home, with the mortgage, and getting the deed to the home. The potential home buyer will find this Vocabulary helpful for understanding words and terms used in real estate transactions. In other steps, the first offer is far less formal, and the seller is expected to draft the actual contract. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Recurring closing costs: Those costs of closing a home purchase that represent the first of a series of payments that will recur over time—such as homeowners' insurance and property taxes. Loan to Value Ratio – The LTV compares the amount of the mortgage and the appraised value of the home to determine the interest rate. For example, increased market demand or inflation can cause property to appreciate. Homeowners' association: An organization made up of neighbors concerned with managing the common areas of a subdivision or condominium complex. Buying a home actually has a lot of moving parts which include […] Fellowship Home Loans is authorized to conduct business in AL, AR, AZ, CA, CO, CT, DC, DE, FL, IA, ID, IL, IN, KS, KY, MA, ME, MD, MI, MN, MS, MT, NC, ND, NH, NJ, NM, OK, PA, SC, SD, TN, TX, VT, WA, WI and WY. Help to Buy Schemes. In the simplest terms possible, interest is what you pay a lender to borrow money. Home-Equity Loan. :). Do Not Sell My Personal Information, Nolo's Essential Guide to Buying Your First Home, What "As Is" and Other Real Estate Marketing Terms Really Mean, final transfer of the ownership of a house, written analysis of a real estate title search, Homeowners: Taxes, Improvements, and More. Allow Wanda Charles to assist you with purchasing or listing your Frisco home. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. There is a lot of lingo that’s specific to real estate, so it can seem like a real estate agent, or mortgage broker is almost speaking another language when they use these terms. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! 01,Jul,2020 0 Comments. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! The homeowners' association is also responsible for enforcing any covenants, conditions, and restrictions (CC&Rs) that apply to the property. When selling a home, it’s impossible to avoid real estate terminology. Pre-approval – A pre-approval means the lender has agreed to loan a specific amount of money. This short guide offers you a great start toward getting comfortable with builder and real estate terminology, ensuring that you're 100 percent clear on everything related to the momentous occasion of buying your first home. Escrow: The holding of funds or documents by a neutral third party prior to closing a home sale. Legal Fees Paid. This shows sellers that you can afford to purchase the home, and obtaining a pre-approval can make it easier to go through the remaining process. No matter if someone has bought a home before or they’re looking for their first home, the terminology used can be confusing. … Continue reading "Home Buying Terminology: A Cheat Sheet" Home Buying Glossary. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! ... Real Estate Terminology. Credit report. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! R. Repayment Mortgage. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Your mortgage lender will no doubt require you to purchase hazard insurance, in order to protect its collateral from decreases in value. The remainder of the payment is due on the closing date. Contingency: A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a specific event, usually by specific dates leading up to the closing. Prepayment penalty: A fee imposed on a borrower who pays off a loan (usually a mortgage) before its due date. The borrower must either pay off the remaining mortgage or refinance the loan at that time. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. The attorney listings on this site are paid attorney advertising. This is how much will be paid each month for the mortgage, so it’s important to understand how much it will be and what percent of the PITI payment goes to each component each month. Probably the most basic home buying term on this list, interest rates are fundamental to all forms of lending. Menu Close. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary. Acceptance: Agreeing to the terms of an offer, thereby creating a contract. Debt to Income Ratio – One of the things a lender will look at is the DTI, or debt to income ratio. Are you looking to brush up on home buying terminology? If you Can Afford To Rent-You Can Afford To Buy! Closing Attorney- The attorney will perform a title examination, prepare all documents, provide communication between buyer and seller, and record documents and disburse money. Common Home Buying Terms Explained When purchasing a home , buyers must navigate a process that entails a host of terms that may not be familiar to most. Telephone provider charges may apply. Annual Percentage Rate – The APR for a loan is the interest rate paid on the loan. No matter if someone has bought a home before or they’re looking for their first home, the terminology used can be confusing. We were kept informed, given the right level of information and received... Glad we can have a new mortgage with Biblical principles.Thanks for making this process very simple. I had heard Mike and Brian on the radio for years and God was telling me to try with them because they would be straight with me even if I didn’t qualify. Banks and mortgage lenders are among those who use the information to screen applicants. Buying a home shouldn’t be rocket science. You just bought a home. Partial financing provided by the seller. Escrow – Escrow is an additional amount that is added to the monthly payment. Wanda Charles. Anything that isn't real estate is personal property. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. You just bought a home. As soon as the seller signs on to your purchase offer, you're in contract for the sale of the house, and neither of you can back out without facing consequences—in your case, likely losing your earnest money deposit and, in the seller's case, a potential lawsuit. You just bought a home. Real estate broker: A real estate professional licensed to negotiate the purchase and sale of real estate for a commission or fee. For example, on a $150,000 home, you might put $15,000 down, get a bank loan for $115,000, and get a seller take back for $20,000. Fellowship Home and Fellowship Home Loans © 2018 All rights reserved. Home Buying Terminology: A Cheat Sheet. You'll need to look into zoning laws if you're hoping to change the use of the home you buy, for example by adding a rental unit or running a home-based business. June 26, 2019 | Posted by: Holly Cochrane. Or the seller might include a contingency asking for proof that the buyer is financially able to close the deal or for closing to be held off until the seller successfully finds another house to buy. They will require additional information before offering a pre-approval, but this can give you a better idea of how much you can spend. Lenders impose this kind of fee to encourage borrowers to hold a debt—and keep paying interest on it—for the whole term of the loan. The term is commonly used in the context of real estate. Balloon mortgage: A mortgage that need not be fully paid off over the loan term (such as five, seven, or ten years), leaving a balance at the end. You just bought a home. Copyright © 2020 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. These typically include lender's fees and points or prepaid interest, a prorated share of the property taxes, transfer taxes, credit check fees, homeowners' and title insurance premiums, deed filing fees, real estate agent commissions, inspection and appraisal fees, and attorneys' fees. This website is not authorized by the New York State Department of Financial Services. However, in some states, the term "broker" is used for all agents. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! It can have fixed or adjustable (ones that fluctuate based on a key index) terms, interest rates, and payments. In such situations, if you can't come up with additional down payment money or a better appraisal, or the seller won't lower the price, the deals might fall through. A glossary of terms used when buying and selling property A-Z. It reviews the terms and costs of the mortgage, so you know what to expect. Consent may be revoked at any time and is not required for service. Buying a home shouldn’t be rocket science. PITI: Abbreviation for the major expenses that make up a mortgage payment: principal (the amount borrowed), interest, (property) taxes, and (homeowners') insurance. Learn about must-know home buyer terms and definitions for every stage of buying a home in this article from Better Money Habits. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Escrow agent: A person (often an attorney) or a company that handles escrow arrangements for a fee usually paid as part of the closing costs. Buying a Lovell Home Buying a Lovell Home. Group. Here are some common real estate terms to know when getting ready to buy a home. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site. A title report is prepared by a title company, an abstracter, an attorney, or an escrow company, depending on local practice. Common interest development: A type of housing, composed of individually owned units, such as condominiums, townhouses, or single-family homes, that share ownership of common areas, such as swimming pools, landscaping, and parking. Assisted Move. Stamp Duty Calculator. You just bought a home. * = Required Field I hereby give consent to be contacted by Fellowship Home Loans or its agents at the number provided regardless of any Do-Not-Call (DNC) list status of such number. You just bought a home. Appreciation: An increase in the value or worth of an asset or piece of property that's caused by external economic factors occurring over time, rather than by the owner having made improvements or additions. In some states, the information on this website may be considered a lawyer referral service. Home Buying Terminology . Earnest money deposit (EMD): A partial payment (deposit) demonstrating commitment in a contractual relationship, and commonly made in real estate transactions at the time of making the purchase offer. The public can now access much of this kind of information through websites like www.realtor.com. There are three major credit reporting agencies—Equifax, Experian, and TransUnion—and they are regulated by the federal Fair Credit Reporting Act. September 1, 2018 Marlo Wells Blog Home. Buying a Lovell Home. Share . I worked with Bryan Duarte from Fellowship Home Loans and he has been outstanding from the 1st conversation! Buying a home shouldn’t be rocket science. Mortgage Payments and Escrow Accounts Explained, Everything You Should Know About Reverse Mortgages, Ways to Improve Your Credit Score to Purchase a Home. You just bought a home. Numerical calculation that creditors use to evaluate the creditworthiness of someone applying for credit, such as a mortgage. Multiple listing service: A computer-based service, commonly referred to as MLS, that provides real estate professionals with detailed listings of most homes currently on the market. Buying a home shouldn’t be rocket science. Real estate: Land and things permanently attached to it, such as buildings, houses, stationary mobile homes, fences, and trees. From the initial offer, to the mortgage application process and closing each of the terms helps everyone involved in the … I was shocked when they said they could do the loan AND pay off some of my credit cards as well. However, there’s some home buying terminology that you should know before you start. We just need some quick information to get started. Buying a home shouldn’t be rocket science. Also sometimes called a title agent. You just bought a home. Coldwell Banker Frisco | Frisco Real Estate listings for sale | Frisco area information for home buyers and sellers in Frisco. Your bank or other lender will require the appraisal in order to ascertain the worth of the house for lending purposes. The terms below are often used in house buying or mortgage process. Closing costs: All settlement or transaction charges (above and beyond the actual cost of the property) that home buyers (or sellers, depending on tradition in your area and what you negotiate with the seller) need to pay at the close of escrow when the property is transferred. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! I heard Fellowship Home on the radio and I wasn’t expecting they would be able to help me lower my rate because my current bank couldn’t do anything. To help you through this process, we have created a list of home buying terminology … I had specific goals in mind when refinancing and Bryan was able to deliver despite all the variables that come with refinancing. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. This compares how much you make with how much you spend before taxes, and most lenders will require the DTI, including the mortgage, to be less than a certain percentage of your income. The mortgage process can be overwhelming but having the Holly Cochrane Mortgage Team on your side can help to reduce your stress. Credit reporting agency: A private company that collects and sells information about a person's credit history. Zoning ordinances control the size, location, and use of buildings within these different areas and have a profound effect on traffic, health, and livability. Here are some real estate terms that ANY buyer will hear over the course of a transaction. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Escrow instructions: Written instructions, signed by a buyer and seller, telling an escrow agent what needs to happen before the deal closes. Adjustable rate mortgage (ARM): A mortgage loan with an interest rate that fluctuates in accordance with a designated market indicator—such as the weekly average of one-year U.S. Treasury Bills—over the life of the loan. While these aren’t all the terms you’ll likely come across while buying a home, they are some of the most common and can give you a good starting point while you’re shopping for your new home. You can receive free copies of your credit report at www.annualcreditreport.com. Closing Disclosure – The closing disclosure is a form provided by the lender before the closing. Traditionally, down payments are 20% of the purchase price, so if you are buying a home for $500,000, your typical down payment would be $100,000. In most states, a broker is one step up from a real estate agent, having more training and the power to supervise agents. Some closing costs are tax-deductible. 469-294-3399. These associations collect monthly dues and take on issues such as garden, pool, and fence maintenance, noise abatement, snow removal, parking area upkeep, repairs, and dues. Title: Ownership of real estate or personal property. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Buying a home shouldn’t be rocket science. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Buying a home shouldn’t be rocket science. State *ALAKAZARCACOCTDCDEFLGAHIIDILINIAKSKYLAMEMDMAMIMNMSMOMTNENVNHNJNMNCNDOHOKORPARISCSDTNTXUTVTVAWAWVWIWY, Loan PurposeRefinancePurchaseReverse MortgageVA LoansHARP, How you heard about us *FriendOnlineRadioOther. The higher the down payment is, the bigger the difference is between the mortgage and appraised value. For a more lighthearted look at real estate ad language, see What "As Is" and Other Real Estate Marketing Terms Really Mean. (Compare with recurring closing costs, defined below.). A home buyer who makes less than a 20% down payment will most likely have to purchase private mortgage insurance, commonly referred to as PMI. Assumable mortgage: A home mortgage that allows the buyer to take over the seller's mortgage; that is, to step into the seller's shoes, make mortgage payments, and comply with other terms of the existing loan. Appraisal: A determination of the value of something, such as jewelry, stock, or, in this case, the house you plan to buy. Mixed-use zones are also used. And, unfortunately, the lender may refuse to fund the loan if the appraisal comes in lower than the loan amount. The seller keeps the earnest money if the buyer fails to make timely payment in full (or if there is a similar breach of the agreement). Ultimately he made sure in the end I was happy with the outcome and I truly appreciated that. There are many terms to understand before the closing, so you’re prepared for it. A written account of a consumer's credit history prepared by a credit reporting agency. Home Buying Terminology Here are some home-buying terms that are good to get familiar with in alphabetical order. They help determine the fair market value of the home to see if you’re getting a good deal or if the seller is asking for too much. Nonrecurring closing costs: Those costs of closing a home purchase that need to be paid only once—such as the appraisal fee, title insurance, and transfer taxes. Hazard insurance: A type of insurance found in homeowners' policies, which protects against physical damage to the property caused by unexpected and sudden events such as fires, storms, and vandalism. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Zoning: The local laws dividing cities or counties into different zones according to allowed uses, from single-family residential to commercial to industrial. Buying a home shouldn’t be rocket science. Fellowship Home Loan is authorized to conduct business in OH. Buying or selling a property is a huge life event. You just bought a home. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Condominiums are often referred to as a common interest development. Buying a home shouldn’t be rocket science. Comps – Comps are the prices of recently sold homes that are similar to the one you’re looking at. Pre-qualification – A pre-qualification simply states that a lender is estimating how much they will offer for a mortgage. You just bought a home. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. 1 Month Visit: This visit occurs 1 month after home closing. Closing Costs – Various costs will need to be paid at the closing. The bigger the LTV is, the smaller the interest rate may be. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! With real estate, title is evidenced by a deed (or other document) recorded in the county land records office. When buying a house for the first time, all the new jargon can feel overwhelming. There may be terms to the agreement, such as no major changes to the finances before the mortgage is obtained. Buying a home shouldn’t be rocket science. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! I was waiting for something to go wrong with the process because of my past experiences with mortgage companies but they did everything they said they would do. For example, a contingency in your home purchase contract might state that, if the buyer does not approve the inspection report of the physical condition of the property, the buyer does not have to complete the purchase. Simply amazing! The legal significance of a counteroffer is that it completely voids the original offer. I hereby give consent to be contacted by Fellowship Home Loans or its agents at the number provided regardless of any Do-Not-Call (DNC) list status of such number. Private mortgage insurance: Insurance that reimburses a mortgage lender if the buyer defaults on the loan and the foreclosure sale price is less than the amount owed the lender (the mortgage plus the costs of the sale). A title report is needed before a lender will agree to finance purchase of the property. Depreciation: The gradual loss of value of property that occurs through external economic conditions, the property's age, natural wear and tear, or deterioration. To learn more about how we use cookies, please see our Cookie Policy. There are a few terms to understand when initially looking into home mortgages. Counteroffer: The rejection of an offer to enter into a contract, where the rejecting party includes a different offer that changes the terms of the original offer in some way.
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