How Familiar Are You With These Real Estate Terms?

    Appraisal – the estimated value of the property

    Certificate of Title – document that ensures the property is legally owned by the person who claims it

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

    Comparative market Analysis (CMA) – a study of how comparable local homes have sold to help determine a reasonable price for property

    Contingencies – conditions that must be met in order for the offer on a home to proceed

    Due Diligence – actions that a responsible buyer must address in to protect the real estate investment

    Debt to Income Ratio – in order to qualify for a loan, your monthly debt cannot exceed 43% of your monthly income

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

    Escrow – an account where all closing costs are collected while the lender approves the deal

    FICO Score – numerical value assigned to lenders based on their credit history

    Fiduciary Duties – the responsibilities of the broker that the real estate agent works for

    Good Faith Deposit – payment made to the lender with the offer to show serious intention

    HOA – homeowners association; the organization that determines community rules and standards

    Loan to Value Ratio – how the lender determines if the loan is worth the risk associated with it

    Mortgage – simply put: the home loan

    Prequalification – the process to determine if a borrower is qualified for a loan; amount is approximate

    Payment Terms – principal, interest, taxes, PMI, etc. all the buyer really needs to know is the monthly and cummulative totals

    Information via Boom Rizal (@boomrizal) in an article for Inman.com

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