ADJUSTABLE RATE MORTGAGE (ARM) - The interest rate is tied to a financial index, making the monthly mortgage payment go up or down over time.
ANNUAL PERCENTAGE RATE (APR) - The percent of interest that will be charged on a home loan.
APPRAISAL - A report highlighting the estimated market value of the property based on local market data and the recent sales price of similar properties, completed by a professional appraiser.
ASSESSED VALUE - Value placed upon property for property tax purposes by the Tax Collector.
ASSOCIATION FEE/HOA FEE - In addition to a mortgage, certain housing communities such as townhomes have a monthly fee associated with maintaining the common areas and amenities.
CLOSING - This is the final step in the transfer of property ownership. Buyers sign all the documents relating to the transaction, and the final disbursements are paid.
CLOSING COSTS - The buyer and seller have expenses associated with the transaction other than that of the actual cost of the home. For example, the buyer has a variety of fees due for obtaining a new loan, and the seller must pay a commission to both agents.
CLOSING STATEMENT - The statement which lists the financial settlement between Buyer and Seller, and the costs each must pay.
COMMISSION - A percent of the sale price of the home that is paid to agents. The seller pays a commission to both the buyer and the listing agent.
COMPARABLES - Homes in the area of interest that have recently sold that have similar features.
CONTINGENCIES - Conditions that must be met in order to close. Contingencies are typically tied to a date, referred to as a deadline. If the contingency is not satisfied, the contract may be canceled.
CONVENTIONAL MORTGAGE - A mortgage or Deed of Trust not obtained under a government-insured program such as FHA or VA.
MARKET VALUE - The highest price a willing buyer would pay and a willing seller would accept, both being fully informed, and the property being exposed for sale for a reasonable period of time.
MORTGAGE INSURANCE - Insurance written in connection with a mortgage loan that protects the lender in the event the borrower cannot repay their loan. This is usually not required if the borrower has 20% or more for the down payment.
MULTIPLE LISTING SERVICE (MLS) - The national list of real estate properties that are available for sale. These are the most reliable sources to receive up-to-date listing information.
PRE-APPROVAL LETTER - A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that they are a serious buyer.
PRELIMINARY TITLE REPORT - A report showing the condition of the title before a sale or loan transaction. After completion of the transaction, a new title insurance policy will be issued.
PRINCIPAL - The underlying amount of the loan which is actually borrowed.
COUNTEROFFER - An offer, made in response to a previous offer, that rejects all or part of it while enabling negotiations to continue towards a mutually acceptable sales contract.
DEBT TO INCOME RATIO - A lender will look at a borrower's debt versus income to determine the amount of loan they are eligible for and if they can repay their debt plus the home loan.
DOWN PAYMENT - A percent of the cost of the property that is paid upfront as a part of the mortgage.
EARNEST MONEY DEPOSIT - The deposit made from the buyer to the seller when submitting an offer. The deposit given by a Buyer in California is usually 3% of the purchase price to a Seller to show that the buyer is serious about purchasing the home. Earnest money is usually refundable to a homebuyer in the event a contingency in the sales contract cannot be met.
FHA - A mortgage that is financed through a private lender and insured by the Federal Housing Administration, often requiring a lower down payment and income to qualify.
FIXED RATE - A loan on which the interest rate and monthly payment do not change.
HOME INSPECTION - Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc.
HOME WARRANTY - A policy that covers certain repairs (e.g. plumbing or heating) of a newly purchased home for a certain period of time, typically one year.
HOMEOWNERS INSURANCE - A policy that protects the homeowner and the lender from fire or flood, liability such as a visitor injury, or damage to your personal property.
INTEREST RATE - The percentage of the amount of money that is paid in order to borrow money for a specified amount of time.
LOAN - A sum of borrowed money (principal) that is generally repaid with interest.
PROPERTY TAXES - These are the taxes that are enforced by the city, town, county, and state government entities. These taxes are included in the total monthly mortgage payment and are held in escrow by the lender.
TITLE - A legal document proving current and proper ownership of the property. Also referred to as a Title Deed, this document highlights the history of property ownership and transfers.
TITLE INSURANCE - Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title.
RECORDING FEES - Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
UNDERWRITING - The process in which the potential home buyer is evaluated for their financial ability to obtain and repay a loan. This normally consists of a credit check and appraisal of the property.
VA LOAN - Loans that are given to Americans who have served in the armed forces. They are administered by the Department of Veteran Affairs.
Ani Estate Group have been my realtors for several successful real estate transactions. Each time, I have found their knowledge, expertise and attention to detail impressive. They are both professional and personable. They provide a high level of attentiveness to their clients and are extremely efficient. -EJ