The ABC of Real Estate

The ABC of Real Estate
A Appraisal: An estimation of a home’s market value by a licensed appraiser based on comparable recent sales of nearby homes.
B Backup offer: A secondary offer on a home that is under contract and becomes active if the primary contract falls through.
C Contingent offer: An offer is accepted by the seller, but certain conditions must be met before the sale is final.
D Down payment: The percentage of the home purchase price (usually between 5% and 20%) paid upfront in cash.
E Escrow: A neutral third party that holds funds from the buyer and distributes them when all conditions have been met.
F Federal Housing Administration (FHA): The government agency that insures loans designed for low- to moderate-income borrowers.
G 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.
H Homeowners Association: A management organization within a community, subdivision or neighborhood that creates and enforces rules for properties within its jurisdiction.
I Inspection: An examination of a property and its systems performed by a qualified professional, usually before the sale of a home.
J Jumbo mortgage: A mortgage that exceeds the conforming-loan limit, commonly used for luxury home purchases.
K Key rate: An interest rate set by the federal government that determines the cost to borrow money—in this case, a mortgage to buy a new home.

img

kossik8

Related posts

Looking at 2017 – Perspectives on Housing

Looking at 2017 – Perspectives on Housing Posted on December 21, 2016 by DavidHStevens Much...

Continue reading
by kossik8

Interviewing Your Real Estate Agent

Choosing the right real estate agent is one of the most important decisions you'll ever make....

Continue reading
by kossik8

The one thing every home buyer needs to know

Buying a home, whether you are a first-time buyer or a seasoned vet, is both an exhilarating and...

Continue reading
by kossik8

Join The Discussion