It’s not uncommon for home buyers to have questions about basic real estate concepts and terminology. Its part of a realtor’s job to guide their clients through this process as they make what’s likely the biggest purchase of their lives. Reach out to one of our agents if you have more questions, we are always ready to help!
Acceleration Clause- this is a contract clause requiring the borrower to repay their entire outstanding loan to a lender if certain requirements -- outlined by the lender -- aren’t met.
Annual Percentage Rate- the (APR) is the amount of interest charged on your loan every year.
Comparable Sales - are used by an appraiser to establish a home's worth based on what other similar homes in the area have sold for recently. Only homes that have legally closed count as a comp -- and most lenders and insurance providers require appraisers to use at least three closed sales.
For Sale By Owner -Homes listed as “for sales by owner” (FSBO) are being sold without the help of a real estate agent.
Contingency are certain events that must occur or the contract can be considered void. I.E. successful building inspections, other testing, a passed appraisal…
Mortgage - is the agreement between a borrower and a lender giving the lender the right to the borrower’s property if the borrower is unable to make loan payments (with interest) within an agreed upon timeline.
Multiple Listing Service (MLS)-a regional database of listings. Each database has its own listings, requires agents to pay dues for access, and allows agents to share listings across regions -- without paying dues to each one. It is widely considered the most comprehensive listing service available.
Pre Approval-Before submitting an offer on a home (or even enlisting the services of a real estate agent) you’ll likely be required to get pre-approved. This means a lender has checked your credit, verified your information, and approved you for up to a specific loan amount for a period of up to 90 days.