Appraisal – A professional appraiser’s opinion of property value.
Certificate of Title – document that ensures the property is legal.
Closing Costs – fees and expenses associated with sale/purchase of a home.
Contingencies – Conditions that must be met, for the offer on a home to proceed.
Earnest Money Deposit – payment made to the seller with the offer to show serious intention.
Escrow Period – The time between offer acceptance and closing.
FICO Score – Credit score, the higher the score the better
HOA – Home Owners Association: the organization that determines community rules and standards.
Mortgage – The home loan.
Prequalification – The process to determine if a borrower is qualified for a loan before writing an offer – amount is approximate.
Payment Terms – principal, interest, taxes, PMI, etc. All the buyer really needs to know is the monthly and cumulative costs.
Loan to value –a ratio shown as a percentage. It is the ‘appraised value’ of the home V.S. the loan against the property. EG: 80% LTV would mean you have an 80% loan on the property when compared to the appraised value.
PMI – Private Mortgage Insurance: a type of insurance you might be required to pay if you have a conventional loan with less than 20% down. It protects the lender in case the buyer stops making their payments.