Woodbury MN Home Buying Process, Woodbury MN - Durham Executive Group
The Durham Executive Group, John and Becky Durham provide the following glossary of home buying terms as a benefit to Woodbury MN home buyer's.
Addenda
These are supplemental documents that are part of a purchase agreement.
Adjustable Rate Mortgage, ARM
A loan where the interest rate adjusts to current rates during the duration of the loan.
Annual Percentage Rate, APR
The cost of the loan, including the interest rate, points, origination fee and other charges.
Assessments
When a city makes improvements to city property, homeowners must pay for these improvements through their city taxes.
Association Dues
Payments condominium and townhouse owners make for upkeep and management of shared property.
Assumable
A loan where a buyer arranges to take over the seller's original loan.
Buyer's Broker
An agent who works on behalf of the buyer and who has the buyer under contract.
Closing Costs
The costs involved in the transfer of property.
Commitment Letter
A letter from the buyer's lender showing qualification of a loan and listing the terms.
Contingency
An-addition to a purchase agreement stating that certain terms be met within a time frame for the agreement to remain valid.
Contract for Deed
An owner offering the buyer financing, and the buyer makes monthly installments to the owner.
Conventional Loan
Loans without government involvement.
Credit Score
A rating based on your credit history.
Default
Failure of loan payment.
Down Payment
An up-front payment made on a home.
Earnest Money
Money paid to the agent when an offer is made on a property. If the offer is approved, the money is counted toward payment of the property. If the offer is denied, the money is returned to the buyer.
Equity
The portion of the property that you own that is clear of any mortgage.
Escrow
Money paid in addition to the monthly mortgage payment that is used toward paying property taxes and insurance.
FHA Loans
Loans that are backed by the Federal Housing Administrative.
Fixed Rate Loans
A loan that has a constant rate for the duration of the terms.
Gross Income
Your income before taxes.
HUD - 1 Form
A settlement statement of all of the closing costs.
Homeowners Insurance
Insurance which homeowners purchase to protect their investment.
Homestead Taxes
Property taxes paid by owners who actually live in the home.
Interest
Lender's charge for a loan.
Loan Origination Fees
Fees you pay your lender for handling and processing your loan application.
Loan Processing
An analysis by a lender to determine your qualification for a loan.
Lock-In-Agreement
An agreement by a lender to determine your qualification for a loan.
Long-Term Debt
Debt you will owe on for more than six months.
Mortgage Discount Points
Prepaid interest on a loan.
Mortgage Insurance Premium, MIP
Insurance that a lender is required to charge for an FHA loan.
PITI-The Monthly Loan Payment
Principal, Interest, Taxes, and Insurance.
Prepayment Penalty
A penalty fee assigned for early payoff on a loan.
Prime Mortgage
Highest grade of mortgage that you qualify for.
Principal
Total amount you are borrowing for a home.
Private Mortgage Insurance, PMI
If you make less than a 20% down payment on a conventional loan, you will be required to pay for this insurance.
Property Tax Adjustment
Reimbursement to the seller for taxes already paid for the year.
Purchase Agreement
A legally binding agreement between the buyer and seller that lists the terms and conditions of the sale of the property.
Re-Issue Credit
Savings on the cost of homeowner's insurance for using the same company the previous owner used.
Sub-Prime Mortgage
Has a higher interest rate than prime mortgage.
Subagent
A seller's agent that owes their duties to the seller. A subagent may bring a potential buyer to a property.
Title Insurance
Insurance that you pay to protect the lender from claims on the property title.
Truth-In-Housing Inspection Report
An inspection that the seller pays for that states the condition of the house.
Truth-In-Housing Disclosure Statement
A statement from your lender stating all fees and costs of a loan using the annual percentage rate.
Underwriting
Risk analysis conducted by a lender to decide whether to approve you for the loan.
VA Loan
Low-interest, no down payment loans offered to people who served in the U.S. Military and issued from the Veterans Administration.
*The above glossary of terms was provided by the National Association of Realtors.
John and Becky are top selling Woodbury MN real estate agents with backgrounds and work experiences that set us apart from our competition. We are both educated with post graduate degrees and have worked in upper bracket professional management positions in both business and educational settings prior to real estate. We know how to work with all social and economic clientele - whether it's a first time buyer, or a multi-million dollar client. We put the emphasis on ‘EXECUTIVE LEVEL' service regardless of the size of the transaction.
Our mission statement embodies putting the client first. We recognize the importance of listening to, and fully understanding our clients' needs and concerns. Each of us brings a unique set of marketable skills with none more important than integrity and honesty. We give our word that there will never be a transaction we are involved with that is not handled with professionalism, honesty, and integrity. Additionally, we pride ourselves on our communication skills and the ability to market and negotiate our client's properties with superior results.
John and Becky Durham, MS, ASP, ARS
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