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.
