REAL ESTATE TERMINOLOGY:
Amortization: The gradual repayment of a mortgage loan, including both principal and interest, through regular payments over a specified period.
Appraisal: An evaluation of a property's value conducted by a licensed appraiser to determine its market worth.
Assessment: The value assigned to a property by a tax assessor for the purpose of calculating property taxes.
Closing Costs: Fees and expenses associated with finalizing a real estate transaction, including loan origination fees, attorney fees, and title insurance.
Closing Disclosure (CD): A document provided to the borrower by the lender before closing, detailing all costs associated with the mortgage loan.
Closing: The final step in a real estate transaction where the property is transferred from the seller to the buyer, and all necessary documents are signed and funds are exchanged.
Comparative Market Analysis (CMA): A report prepared by a real estate agent that compares similar properties in the area to help determine a property's market value.
Contingency: A condition that must be met for a real estate contract to be binding, such as a satisfactory home inspection or obtaining financing.
Debt-to-Income Ratio (DTI): A ratio used by lenders to determine a borrower's ability to repay a mortgage loan, calculated by dividing total monthly debt payments by gross monthly income.
Down Payment: The initial payment made by the buyer toward the purchase price of a property, typically expressed as a percentage of the total purchase price.
Earnest Money: A deposit made by the buyer to demonstrate their serious intent to purchase the property, usually held in escrow until closing.
Encroachment: Part of a house or establishment illegally hanging over a street or a neighbours property.
Fixed-Rate Mortgage: A mortgage loan with a fixed interest rate and monthly payments that remain the same throughout the term of the loan.
Foreclosure: The legal process by which a lender repossesses and sells a property due to the borrower's failure to make mortgage payments.
Home Inspection: A thorough examination of a property's condition conducted by a professional inspector to identify any potential issues or defects.
Homeowners Association (HOA): An organization that manages common areas and amenities in a community or condominium complex, funded by dues paid by homeowners.
.Homeowners Insurance: A type of insurance that provides financial protection against damage to a home and its contents, as well as liability for accidents that occur on the property.
Listing Agent: The real estate agent who represents the seller in a real estate transaction.
Loan Estimate (LE): A document provided to the borrower by the lender within three days of applying for a mortgage loan, detailing estimated costs and terms of the loan.
Market Value: The estimated price at which a property would sell in a competitive market, based on factors such as location, condition, and recent sales of comparable properties.
Mortgage Broker: A licensed professional who connects borrowers with lenders and helps them obtain mortgage loans.
Mortgage Insurance (MI): Insurance that protects the lender in case the borrower defaults on the mortgage loan, typically required for loans with a down payment of less than 20%.
Multiple Listing Service (MLS): A database used by real estate agents to share information about properties for sale, allowing them to cooperate with each other in the buying and selling process.
Offer: A formal proposal to purchase a property at a specified price and under certain terms and conditions.
Pre-Approval: A preliminary assessment by a lender indicating the amount a borrower is qualified to borrow for a mortgage loan, based on income, credit history, and other factors.
Pre-Qualification: An informal assessment by a lender indicating the amount a borrower might be able to borrow for a mortgage loan, based on self-reported income and assets.
Principal: The original amount of money borrowed in a mortgage loan, excluding interest and other charges.
Private Mortgage Insurance (PMI): Insurance that protects the lender in case the borrower defaults on a mortgage loan, typically required for conventional loans with a down payment of less than 20%.
Property Tax: A tax assessed by local governments based on the value of a property, used to fund public services and infrastructure.
Real Estate Agent: A licensed professional who represents buyers or sellers in real estate transactions, helping them buy, sell, or rent properties.
Requisitions on title: A process where the buyer requests additional information about the title of the property from the seller
Seller's Market: A market condition in which there are more buyers than sellers, leading to higher prices and fewer days on the market for properties.
Title Insurance: Insurance that protects the buyer and lender against defects in the title or ownership of a property, ensuring that they have clear ownership rights.
Title Search: An examination of public records to verify the legal ownership of a property and identify any liens, judgments, or other claims against it.
Underwriting: The process by which a lender evaluates a borrower's creditworthiness and the risk of lending them money for a mortgage loan.
Valuation: A written analysis of the estimated value of a property prepared by a qualified valuer.
Walkthrough: A final inspection of a property conducted by the buyer before closing to ensure that any agreed-upon repairs have been completed and the property is in the expected condition.
Zoning: Government regulations that control the use of land and buildings within a specific area, determining what types of activities are permitted and where they can be located.