Active - A property that is on the market and is available for sale.
Appraisal - A professional estimate of value prepared by an appraiser. This is required by lenders to ensure that the property is worth as much or more than the amount that they a lending to you.
Closing - The actual purchase transaction. You will go to the office of the title company handling the purchase and sign the papers. If you are unable to go to the title company a mobile notary can meet you elsewhere. There may be a fee charged for a mobile notary.
Closing Cost - Various fees you pay related to the purchase of a property. They are usually around 2 to 5 percent of the purchase price.
Closing Disclosure - A final statement of loan terms and closing cost. The buyer must receive it 3 business days before closing.
Contingency - A condition that must be met before a sale can close. Common contingencies include home inspection, financing, and home appraisal.
Down Payment - The amount of money the buyer pays at closing toward the home purchase.
Earnest Money - A partial payment by a buyer when submitting a contract. It demonstrates the buyer's commitment to the purchase. The money is held in an escrow account and goes toward closing cost.
Escrow - A neutral or third party who handles the exchange of money and documents on behalf of the buyer and seller before the closing of a sale.
MLS - Multiple Listing Service. A local or regional real estate service that compiles available properties submitted by real estate agents. An MLS can only be accessed by real estate brokers and agent.
Pending - An offer has been accepted, the contract has been executed and the contingencies have been met.
PMI - Private Mortgage Insurance. Insurance that protects the lender against loss if a borrower defaults on a loan. PMI is required for conventional loans that have less than a 20% down payment.
Title Company - A company that handles a real estate transaction, which verifies and insures title (ownership) of property.
Title Insurance - Compensates the buyer or lender if title defects, liens or competing claims of ownership on a property arise after closing.
Things to keep in mind
- Hauled water with FHA financing requires a water waiver – always disclose this to your lender.
- Peeling paint will be an issue for FHA, USDA & VA.
- Health & Safety issues will be an issue for any type of financing.
- Legal access – there has to be legal access to a property for it to be financeable.
- VA always requires a termite report.
Need to Know Real Estate Terms
Accredited Buyers Representative
Here is the link to be able to look up an address and see if the property is eligible for USDA financing. Keep in mind that USDA does not allow hauled water and no manufactured unless it is new from the dealer and never occupied.