KEY TERMS
Get a better understanding of common real estate language and practices.
Inspection An expert conducts a formal review of the property to fnd visible issues that need to be repaired. Buyers typically make their offers contingent on an inspection, but sellers can conduct a pre-offer inspection to appeal to buyers. The buyer may choose to do additional inspections like radon and a sewer scope. Lien Search A background check on the property and the seller to ensure there are no outstanding debts or claims upon the property. Pre-Approved Advanced approval from a bank or other lending institution for a home mortgage. Pre-Qualifed Potential buyers provide an overall fnancial picture and mortgage brokers provide an estimate of what level of loan you will likely be pre-approved for. Title Insurance Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property. Recording Fees A fee paid to the local government to offcially report a sale of a home; usually paid by the buyer.
Appraisal
Debt-to-income ratio
Assessment of the property’s market value, for the purpose of obtaining a mortgage and performed by a licensed appraiser. Assessed Value Value placed upon property for property tax purposes by the tax collector. Closing Costs Expenses incidental to a sale of real estate, such as loan fees, appraisal fees, and title insurance. Certain criteria that have to be met in order to fnalize the sale. Contingency
The percentage of an individual's monthly gross income relative to the amount of debt owed.
Earnest Money Deposit (EMD)
A good faith deposit the buyer makes with an offer to show that you are serious about buying the property. In exchange, the seller agrees to stop marketing the property. Final Walkthrough The buyer reviews the house just before closing to make sure everything is in the same condition and that all home inspection items are fxed.
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