If you are new to the home buying experience or it has been awhile since you have been in the market, you may want to refresh your real estate lingo. Following are some common terms you will hear frequently during your home-buying venture.
Listings: Real estate agents refer to homes for sale as "listings." A "listing" on a website shows information about the home, like the price and number of bedrooms.
Comparative Market Analysis (CMA): This is an evaluation of comparable recently sold homes in a neighborhood (known as "comps") to determine a fair price range for a certain home on the market.
Appraisal: When you apply for a mortgage, your lender will require an appraisal of the home you want to buy. A licensed appraiser will estimate the home's value based on comparable homes that have sold in the area and an investigation of the property.
Contingencies: When you put in an offer on a home, you can specify certain conditions that must be met before the deal will go through - these are called contingencies.
Good Faith Estimate (GFE): An estimate of a loan's total costs that lenders are required to provide to borrowers .
Mortgage Insurance: This insurance protects the mortgage lender against loss if a borrower defaults on his loan.
Earnest Money: The money buyers pay within one to three business days after agreeing with the seller on a price for the home to show that they're serious about the offer.
Escrow: A neutral third party or attorney that handles the exchange of money and documents once mutual acceptance is reached on an offer. Escrow handles the transfer of the buyer's loan documents and property taxes and works with a buyer's lender and real estate agent to make sure that the title of the home is clear of liens before the transfer of ownership.
HUD-1 Settlement Form: The official settlement document for the purchase and sale of real estate from the Department of Housing and Urban Development (HUD). The form is completed by the escrow agent or attorney handling closing and lists all costs of the transaction for both the buyer and the seller.
Closing Costs: Common fees include excise tax, loan-processing costs and title insurance. For a more exact list of what you'll be charged, ask for a "Good Faith Estimate" from your lender.
Title Insurance: After all the negotiations are done and the seller has accepted your offer, you should receive a home title report within a week. Most mortgage lenders require you to pay title insurance as part of the closing costs.
Deed: A legal document filed with the county that documents the transfer of home ownership. This is a document the buyer signs when her deal closes and she'll receive a copy once the original is recorded by the county.
This fall is the perfect time to find out about qualifications, monthly savings and the housing inventory that may fit your home buying needs. Mortgage rates will be going up this year so if you have any interest at all, our real estate team of Rorabeck Real Estate Group in partnership with Waterstone Mortgage can help you explore the dream of home ownership with courtesy, respect and thorough service!
Author:Dan Rorabeck Phone: 612-720-1310 Dated: November 10th 2014 Views: 411 About Dan: Dan has held his broker agent license since 1984. As a broker agent for Keller Williams Integrity Re...
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Whether you are buying or selling your home, the 'Rorabeck Real Estate Group' with Keller Williams Realty Integrity WI/MN will make sure your experience is a pleasant one. We pride ourselves on our close to 30 years of experience and our superior customer service within St. Paul, MN, Hudson, WI and the surrounding Western WI areas. Contact us for your home buying & selling needs. "Who do ya know wants to buy a home?"
""Ciara was persistent and professional from the beginning in a helpful way. She responded promptly and always treated our sale as important on the day of the sale as she did before we were a client. My wife and I are very grateful to have made the choice we did to work with Ciara's team.""