Real Estate Agent MLS

Real Estate Agent MLS Guide & Market Information

Real Estate Agent MLS header image 3

N- W

Natural Hazard Disclosure:
Report provided to the buyer from the seller which discloses whether the property is located in any areas that are at risk to natural hazards, such as flood, earthquake or forest fire.

No or Low Down Mortgages:
Mortgages that require little or no cash down payment.

Offer Price:
Price offered to the seller at the start of a negotiation.

Offer to Purchase:
A preliminary agreement, frequently secured by the payment of earnest money, between a buyer and seller that serves as an offer to purchase real estate. The agreement secures the right to purchase real estate upon agreed terms for a specific period. The earnest money is usually forfeited if the buyer’s situation changes or is unable to purchase, unless the agreement specifically provides that the money is to be refunded.
Origination Fee:Percentage (usually 1%) of the buyer’s loan paid by the buyer in cash at closing.

PITI:
Real estate industry jargon, an acronym for Principal, Interest, Taxes, and Insurance.

PMI:
Acronym for Private Mortgage Insurance. PMI is the amount paid by a mortgagor for mortgage insurance, to a government agency such as the Federal Housing Administration (FHA) or to a private Mortgage Insurance (MI) company.

Points:
A one-time charge by the lender for originating a loan. A point is one percent (1%) of the amount of the mortgage.

Pre-Approved for Financing:
Preliminary recommendation by a lender for a borrower’s mortgage application at a certain maximum amount and mortgage rates.

Prepaid Items:
Charges paid on behalf of the buyer at the time of closing that will be due later. These include homeowner’s association dues, insurance and tax reserves, prepaid interest, and more.

Prepayment:
Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from the owner’s decision to pay off the loan in full, a sale of the property or a foreclosure. In each case, payment occurs before the loan is fully amortized.

Pre-Qualification:
Preliminary recommendation by a lender that a buyer will qualify for a specific mortgage amount based on information provided by the buyer alone and not verified through other sources.

Principal:
The mortgage loan amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage loan.

Private Mortgage Insurance:
The amount paid by a mortgagor for mortgage insurance, to a government agency such as the Federal Housing Administration (FHA) or to a private Mortgage Insurance (MI) company.

Property Inspection:
Refers to an inspection of property performed by certified home inspectors at the buyer’s request. Typically, this inspection is done right after the property goes under contract.

Property Taxes:
Fees levied against the owner of real property.

Property Type:
A type of particular real estate or land. For example, single family, condominium, vacant land, and townhouse.

Purchase Agreement:
A contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms and conditions specified in writing and signed by both parties. Also known as an Agreement of Purchase, Contract of Purchase, or Sales Agreement according to location or jurisdiction.

Quitclaim Deed:
A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made.

REALTOR®:
A real estate agent who abides by a strict code of ethics as a member of the local and state boards and the National Association of REALTORS® (NAR).

Refinancing:
The process of the same mortgagor paying off one loan with the proceeds from another loan.

Residential Lots:
A piece of land or real estate used for private housing.

Residential Service Contracts:
An insurance policy that covers repairs to specified parts of a house for a specific period. Also known as a Home Warranty.

Sales Agreement:
A contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms and conditions specified in writing and signed by both parties. Also known as an Agreement of Sale, Contract of Purchase, or Purchase Agreement according to location or jurisdiction.

Seller Disclosure:
A document that includes all pertinent information about the physical characteristics, conditions and other factors about the property that influence a buyer’s decision.

Seller Representation:
A sales professional agrees to place a seller’s interests above all others in the transaction.

Seller’s Agent:
A licensed real estate sales professional who represents the seller of real estate.

Seller’s Disclosure:
A document that includes all pertinent information about the physical characteristics, conditions and other factors about the property that influence a buyer’s decision.

Seller’s Market:
Market economy to the seller’s advantage. There is a greater supply of buyers than there are home for them to purchase.

Settlement Fee:
Administrative fee charged by the person and/or company that closes the transaction.

Single-Family:
Residential structure intended for use by one family.

Special Assessments:
A tax or levy customarily imposed against only those specific parcels of real estate that benefit from a proposed public improvement like a street or sewer line.

State Tax Stamp:
Tax charged when title passes from the seller to the buyer.

Status Change:
A property stage that has become different. For example, an Active Available property may have a status change to Pending after an offer to purchase is accepted by the buyer and seller.

Survey:
A drawing or map of a property that shows the precise legal boundaries, location of improvements, rights of way, easements and other physical features.

Surveyor:
Professional who performs a survey that determines the location, form and boundaries of property.

Tax:
A contribution for the support of a local, state or federal government required of persons, groups or businesses within the domain of that government.

Tax Certificates:
Statements provided by a taxing authority showing that current taxes are paid.

Terms:
Specific conditions associated with an agreement between parties. Mortgage terms deal with payment amounts, payment intervals, length of the loan, how the loan is amortized and more. Real estate contract terms deal with down payment, loan amount, total sales price and other conditions of the sale.

Title Company:
A company that examines and insures titles to real estate.

Title Insurance:
A policy that protects the lender (lender’s policy) or the buyer (owner’s policy) against loss arising from disputes over ownership of real property.

Townhouse:
Typically a dwelling unit with two or more floors that is attached to other walls.

Transfer and Recordation Taxes:
Taxes charged when title passes from seller to buyer.

Transfer Tax Stamps:
Taxes charged when title passes from the seller to the buyer usually levied by the state and the county.

Trustee:
A fiduciary that controls or holds real property for the benefit of another.

Underwriter:
Person or entity responsible for approving a borrower for a mortgage based on the assessment of the buyer’s creditworthiness and risk for the lender.

VA Loan:
A mortgage given to a veteran where the lender is insured against loss by the Veteran’s Administration (VA).

Variable Rate Mortgage:
A mortgage with an interest rate that is periodically adjusted by the lender based on a specified index. Also known as a Adjustable Rate Mortgage. Typically, these mortgage products start with a lower interest rate, then the interest rate may move up or down as market conditions and the index change.

Walk-Through:
Buyer inspection of the property before closing.

No Comments

No Comments so far ↓

There are no comments yet...Kick things off by filling out the form below.

Leave a Comment

You must log in to post a comment.