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    Real Estate Lingo!

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    If you are a first time home buyer, or even a repeat buyer, you quickly realize that

    real estate has a language all its own. Understanding some of the lingo can help

    you navigate the process a little easier. By learning a few critical terms, you will be

    in a better position to ask the right questions and make the best decisions.

    • Buyer’s Market – A real estate climate where the amount of listings

    outnumber qualified buyers.

    • Seller’s Market – A real estate climate when there are very few desirable

    properties listed for sale.

    • Contingencies – Specific conditions included in offer to protect the buyer

    against unexpected situations, such as inspection, loan approval and

    appraisal value.

    • Earnest Money – Money deposited when the offer is accepted. Subject to

    any contingencies, this money protects the seller from a buyer who simply

    changes her mind.

    • Escrow Agent – A neutral 3rd party who manages the paperwork in a state

    where attorneys are not used to conclude the contract.

    • Closing Costs – Fees which must be paid by both buyers to conclude the

    sale.

    • Conforming Loan – A conforming loan is a loan limit by which the loan can

    be sold on the secondary market; a jumbo loan is one which is higher than

    this limit.

    • PMI – PMI, private mortgage insurance is a fee paid by the borrower of a

    loan that they obtained with less than a 20% down payment.

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