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Real Estate Terms

 

Real Estate terms can be a foreign language for some buyers.  It can often be intimidating when you are not in the day to day operations of home buying or selling. Below are some great definitions for basic real estate knowledge.  Remember, no question is a dumb question.  Always ask your real estate agent, loan officer, or closing attorney if you do not understand. 

 

Appraisal – the estimated value of the property from a licensed appraiser.  This is order by the buyer’s bank or mortgage company.

Closing Costs – all the fees and expenses associated with closing a home, usually around 6% of the cost of the home.

Contingencies – condition that must be met for the offer on a home to proceed

Earnest Money Deposit – payment made to the seller with the offer to show serious intention

FHA – Federal Housing Administration-  government agency that insures some loans.

HOA – Home Owners Association – organization that determines community rules and standards.

HUD – Housing and Urban Development – US government agency with the mission to increase home ownership, support community development and increase access to affordable housing.

Inspection – the examination of a property and its system performances by a qualified professional, before the sale of the home.

MLS – Multiple Listing Service – database for real estate agents to list and market for sale homes.

Mortgage – the home loan

Prequalification - the process to determine if a borrower qualifies for a loan.

REO- Real Estate Owned Property – repossessed property owned by a lender.

Settlement Statement – also known as a HUD-1, form used to itemize all charges imposed up a borrower and seller for a real estate transaction.

Under Contact – when a buyer has submitted an accepted offer, but the closing is not yet final.  Also known as pending.