Real Estate Lingo REVEALED: for Buyers and Sellers: Part 1

By
Real Estate Agent with Long and Foster BEL AIR MARYLAND

The real estate professional often forgets that we are entrenched in lingo. My goal in being your real estate professional is to educate you on the home buying and selling process. I hope you will find this series on real estate lingo informative. And as always I look forward to serving your real estate needs.

REAL ESTATE LINGO REVEALED

A

Amenity: a feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, Woods, water) or man-made (like a swimming pool or garden).

Amortization: repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years)

Annual Percentage Rate (APR): calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan.

Application: the first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process.

Appraisal: a document that gives an estimate of a property's fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.

Appraiser: a qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.

ARM: Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the Change in monthly -payment amount, however, is usually subject to a Cap.

Assessor: a government official who is responsible for determining the value of a property for the purpose of taxation.

Assumable mortgage: a mortgage that can be transferred from a seller to a buyer; once the loan is assumed by the buyer the seller is no longer responsible for repaying it; there may be a fee and/or a credit package involved in the transfer of an assumable mortgage.

B

Balloon Mortgage: a mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower.

Bankruptcy: a federal law Whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay.

BPO: Brokers Price Opinion: A real estate agent prepared report for a lender of the value of a property

Borrower: a person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.

Building code: based on agreed upon safety standards within a specific area, a building code is a regulation that determines the design, construction, and materials used in building.

Budget: a detailed record of all income earned and spent during a specific period of time.

C

Cap: a limit, such as that placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease.

Cash reserves: a cash amount sometimes required to be held in reserve in addition to the down payment and closing costs; the amount is determined by the lender.

Certificate of title: a document provided by a qualified source (such as a title company) that shows the property legally belongs to the current owner; before the title is transferred at closing, it should be clear and free of all liens or other claims.

Closing: also known as settlement, this is the time at which the property is formally sold and transferred from the seller to the buyer; it is at this time that the borrower takes on the loan obligation, pays all closing costs, and receives title from the seller.

Closing costs: customary costs above and beyond the sale price of the property that must be paid to cover the transfer of ownership at closing; these costs generally vary by geographic location and are typically detailed to the borrower after submission of a loan application.

Commission: an amount, usually a percentage of the property sales price, that is collected by a real estate professional as a fee for negotiating the transaction..

Condominium: a form of ownership in which individuals purchase and own a unit of housing in a multi-unit complex; the owner also shares financial responsibility for common areas.

Conventional loan: a private sector loan, one that is not guaranteed or insured by the U.S. government.

Cooperative (Co-op): residents purchase stock in a cooperative corporation that owns a structure; each stockholder is then entitled to live in a specific unit of the structure and is responsible for paying a portion of the loan.

Credit history: history of an individual's debt payment; lenders use this information to gouge a potential borrower's ability to repay a loan.

Credit report: a record that lists all past and present debts and the timeliness of their repayment; it documents an individual's credit history.

Credit bureau score: a number representing the possibility a borrower may default; it is based upon credit history and is used to determine ability to qualify for a mortgage loan.

kelly willey christian realtor

SEARCH HARFORD COUNTY REAL ESTATE

 

I have lived in Maryland all my life and been an active real estate professional for the last 20 years.

 If you have a home to sell in Baltimore County, Baltimore City, Harford County or Cecil County call an agent that knows the area and works hard to make you a satisfied client.

 I specialize in the marketing of residential homes and utilize numerous internet marketing techniques as well as old fashioned hard work like walking door to door through neighborhoods looking for prospective buyers.

 When I am not helping my clients with their real estate needs I enjoy spending time with my family and my Pomeranian Zeke, bible study, gardening and foreign mission work. In 2007 I founded Micah Missions a non-profit company designed to raise awareness and funds to assist the struggling Haitian refuges in the Dominican Republic.

 

Kelly Willey, SRES, REO Expert

Long and Foster Realtors

Be Air Office

3004 Emmorton Rd

Abingdon, MD 21009

 

 

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C Tann-Starr
Tann Starr & Associates, Inc. - Palm Bay, FL

Very cool. I'm going to modify my renter's post and link back to you. They may find this useful. Thank you for sharing this, Kelly. Regards, C. :-)

Sep 28, 2008 06:19 AM #1
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Kelly Willey

Short Sale Agent - Harford County Maryland Real Estate
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