Foreclosure: When a property owner cannot make the payment on his or her loan, the property is seized and sold by the bank.
Short Sale: The lender is willing to accept a payoff that is less than the amount owed on the property.
Sheriff Sale: When the homeowner has defaulted on the loan the sheriff will auction the property off on the court house steps.
Loan Modification: The mortgage terms are changed through a modification of the loan and both the lender and the homeowner are bound by the new terms.
Appraisal: An estimation of the value of a property on a certain date given by a qualified person.
Good Faith Estimate: is a estimate of fees that will be charged to the borrower for a mortgage loan.
Fico Score: is a number representing the creditworthiness of a person or the likelihood that person will pay his or her debts.
HUD1 Statement: is a itemization of charges imposed upon a borrower and seller for a real estate transaction.
Buyer's Agent: Represent the buyer's interest by monitoring the transaction from start to finish: meaning that the buyer's agent works solely in the best interest of the buyer.
Comparative Market Analysis (CMA): A method of assessing or establishing the fair market value of a property, using recently sold and are similiar in size, condition, location and amenities to the subject property.
Earnest Money Deposit (EMD): A deposit a buyer makes at the time of submitting an offer, to demonstrate the true intent to purchase.
Sales Contract: An agreement between buyer and seller on the price and other terms and conditions of the sale of property.
Title Insurance: A policy, usually issued by a title insurance company, which insures a homebuyer against errors in the title search.
Pre-Approval: A commitment from a lender to provide a mortgage loan on stated terms to a borrower before the borrower has found a property to buy.
Frequently Ask Questions
How do I find a real estate agent?
You need to find someone with whom you are comfortable, someone you can trust to assist you through the process of buying and selling.
Who pays the Realtor's commission?
Most commonly the Realtor's commission is paid by the seller from the proceeds of the transaction. In some instances a purchaser may arrange to pay a commission directly. All commission arrangements must be put in writing and agreed by all parties.
Why should I use a real esate agent?
Using a real estate agent is always a very good idea. They can guide you through the entire home buying process, and make the experience much easier and convenient for you.
What can one agent offer that another may not?
Everyone has individual experiences that transfer into their daily interactions and many agents do too. There are specialties that are available to agents in terms of education and designations, and areas of specific interest that can develop.
When I find the home I want, should I make a full price offer?
If the home just came on the market, the list price is in line with the price of similiar homes sold in the area, the home is in good condition, and this is the perfect home you've been looking for. YES!
Who does the real estate agent works for?
Before showing you any properties, the agent must disclose who they work for. An agent may be a buyer's agent, a disclosed dual agent, or a seller agent. Be sure you clearly understand the representation of the agent working with you.
What will happen at the closing?
The closing agent will have a stack of papers for you and the seller to sign in regards to the real estate transaction and your loan. They will give you a basic explanation of what each document means.
Can I bring a personal check to the closing?
No. You will need a cashier's check or certified check at the closing.
What is the difference between an inspection and an appraisal?
A home inspection is usually not required by the financing institution, but an appraisal is. The home inspection will discover defects on the property that you may not know about. The appraisal will give the lender the market value of the property and make sure the price you are paying is what it is worth. The lender will decrease the amount of the loan if the property does not appraise for the amount of the offer.
What does the term "as is" mean?
The term means the seller is not going to make any repairs to the property. This however, does not mean that the seller is exempt from disclosing any defects in the property.
What if my offer is rejected?
Your offer may get rejected for one reason or another, but you can make another offer on that home or another home.