APPRAISAL
A written estimate of a property’s current value.
CLOSING COSTS
Fees associated with buying a house that your lender charges and/or you rack up from various third parties.
CONTINGENT
A status in which a house has accepted an offer but relies on meeting certain crieria, such as passing a home inspection or appraisal.
CONVENTIONAL MORTGAGE
A mortgage loan not insured by the government or guaranteed by the Veterans’ Administration. It is subject to conditions established by the lending institution and State statutes.
COMMISSION
A percentage of the sale that is paid to the real estate professional. In most situations, commissions are paid by the seller of the property.
DOWN PAYMENT
The amount of your home’s purchase price you pay upfront.
FHA MORTGAGE
A mortgage that is insured by the Federal Housing Administration (FHA). FHA loans are designed to make housing more affordable.
FORECLOSURE
A property seized by the mortgage lender due to the homeowner failing to make full payments on their mortgage. In hopes to recover the balance of the home loan, the lender will sell the house.
FSBO
A.K.A. For Sale by Owner. A FSBO is a property that is being sold by the current homeowner without the aid of a real estate agent.
HAND MONEY (EARNEST MONEY)
A deposit made by the potential home buyer to show that he/she is serious about buying the house.
INSPECTION
An evaulation of the home in which a professional inspector determines the current condition of the home and its systems.
LISTING
A list of information about a home that is currently on the market.
MLS
A.K.A. Multiple Listing Service. The MLS is a database that includes all available homes for sale in a particular area.
PMI (Private Mortgage Insurance)
The monthly insurance payment a lender must pay if the down payment is less than 20% of the sale price.
PRE-APPROVAL
An evaluation by a lender that determines if the potential buyer qualifies for a loan and, if so, the maximum amount the lender would be willing to lend.
REO
An acronym for “Real Estate Owned.” A REO
property is owned by the bank due to a foreclosure.
REO properties can be purchased from the
bank; however, they are often sold “as is.”
SELLER ASSIST
Money given from the seller to the buyer at
settlement to pay for part of the closing costs.
The amount varies depending what the mortgage
company allows.
- How long have you been selling real estate?
- What percentage of your business is spent working with buyers?
- How well do you know the areas I am looking in?
- How do you prefer to communicate? (Phone, email, text?)
- How often will you communicate with me?
- How many clients are you currently representing?
- How will you notify me of potential homes that hit the market?
- What sets you apart from other real estate agents in the area?
- How will you keep me on track during the buying process?
- The best time for me to tour houses is ______ (daytime, nights, weekends, etc.). Will that work
with your schedule? - Will you and/or your company be able to provide me with resources on home loans, home insurance, home warranty, title, and anything else I need during the buying process?
- Do you have any references that I could contact?
DO CALL YOUR MORTGAGE CONSULTANT
If you are unsure if something will impact your loan, call your representative.
DO KEEP ORIGINAL DOCUMENT
Keep originals of all paystubs, bank statements and other financial documents.
DO PAY ALL YOUR BILLS ON TIME
Late payments on current accounts like mortgage, car payment, charge cards, etc. will impact your credit score which identifies your likeliness to repay your debts. Make your mortgage payments on time but call your loan representative before you make any payments that are scheduled within two weeks of closing.
DON’T APPLY FOR NEW CREDIT or INCREASE ANY CREDIT LIMITS
Avoid making major purchases such as cars, lines of credit for furniture, appliances, computers, etc. If you receive an invitation to apply for new lines of credit or to increase existing credit, don’t respond. If you do, that company will pull your credit report and this will have an adverse effect on your credit score.
DON’T MAX OUT or OVER CHARGE EXISTING CREDIT CARDS
Running up credit cards is the fastest way to bring a credit score down. Try to keep credit cards below 30% of the available limit.
DON’T CONSOLIDATE DEBT or CLOSE CREDIT CARD ACCOUNTS
This may change your qualification ratio of debt to available credit which also affects your credit score. You want to keep an active beneficial credit history on your record. If you really want to do these things, do it after you close your mortgage loan.
DON’T RAISE RED FLAGS
Don’t co-sign on another person’s loan or change your name and address. The less activity that occurs while your loan is in process, the smoother the process will be.
DON’T CHANGE JOBS
Employment stability is a big factor in the underwriting process. Quitting, changing jobs or even changing positions in same company can greatly impact your loan approval. Inform us immediately of any changes to your job, position or income.