The potential home buyer will find this Vocabulary helpful for understanding words and terms used in real estate transactions. I was shocked when they said they could do the loan AND pay off some of my credit cards as well. For a more lighthearted look at real estate ad language, see What "As Is" and Other Real Estate Marketing Terms Really Mean . This compares how much you make with how much you spend before taxes, and most lenders will require the DTI, including the mortgage, to be less than a certain percentage of your income. Closing on the home is the process of paying for the home, with the mortgage, and getting the deed to the home. June 26, 2019 | Posted by: Holly Cochrane. Assisted Move. Mixed-use zones are also used. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Numerical calculation that creditors use to evaluate the creditworthiness of someone applying for credit, such as a mortgage. The higher the down payment is, the bigger the difference is between the mortgage and appraised value. No matter if someone has bought a home before or they’re looking for their first home, the terminology used can be confusing. Telephone provider charges may apply. Menu Close. The terms below are often used in house buying or mortgage process. Annual percentage rate (APR): A yearly interest rate that includes upfront fees and costs paid to acquire the loan, calculated by taking the average compound interest rate over the term of the loan. Buying a home shouldn’t be rocket science. Zoning ordinances control the size, location, and use of buildings within these different areas and have a profound effect on traffic, health, and livability. For many, the terminology used by estate agents and mortgage lenders can be confusing, especially if you are new to the property market. Common areas in condominiums are not individually owned by the residents, but shared by percentage interest or owned by the management organization. You just bought a home. You just bought a home. Buying a home shouldn’t be rocket science. Members typically pay monthly association dues. Realtor®: A real estate agent who is a member of the National Association of Realtors (www.realtor.com) is allowed to call him or herself a Realtor®. You just bought a home. Buying a home is a major endeavor and enjoying a successful real estate transaction requires knowledge and experience. High credit scores (over 700) indicate less risk that you will default on payments, and low scores (under 400) indicate potential problems. Home Buying Terminology: A Cheat Sheet. Learn about must-know home buyer terms and definitions for every stage of buying a home in this article from Better Money Habits. You just bought a home. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! For example, increased market demand or inflation can cause property to appreciate. If you don’t know what they’re saying, you could put yourself at risk of a bad deal or an unfortunate misunderstanding that can cause endless trouble for closing the deal. Real estate: Land and things permanently attached to it, such as buildings, houses, stationary mobile homes, fences, and trees. Buying a home shouldn’t be rocket science. InterContinental Capital Group, Inc. DBA Fellowship Home and Fellowship Home Loans is Registered with the Nationwide Mortgage Licensing System NMLS ID #60134. Home Buying – Glossary of terms . Real estate is also called real property. (Compare with recurring closing costs, defined below.). We just need some quick information to get started. They help determine the fair market value of the home to see if you’re getting a good deal or if the seller is asking for too much. Buying a home shouldn’t be rocket science. Fellowship Home Loan is authorized to conduct business in OH. Fixed rate mortgage: A mortgage loan that has an interest rate that remains constant throughout the life of the loan, usually 15 or 30 years. Contingency: A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a specific event, usually by specific dates leading up to the closing. I had heard Mike and Brian on the radio for years and God was telling me to try with them because they would be straight with me even if I didn’t qualify. The seller is probably hoping to cash in on any appreciation in the home's value since buying it—but the opposite (called depreciation, defined below) is also possible. I hereby give consent to be contacted by Fellowship Home Loans or its agents at the number provided regardless of any Do-Not-Call (DNC) list status of such number. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary. There may be terms to the agreement, such as no major changes to the finances before the mortgage is obtained. Provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying. With real estate, title is evidenced by a deed (or other document) recorded in the county land records office. Buying a home shouldn’t be rocket science. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. We want to hear from you and do everything we can to be of assistance to you! In many states, a home seller must disclose material physical and other defects in the house within his or her knowledge, such as a leaky roof or potential flooding problem; and, in all states, by federal law, sellers must disclose the presence of lead-based paint hazards in buildings constructed before 1978. I heard Fellowship Home on the radio and I wasn’t expecting they would be able to help me lower my rate because my current bank couldn’t do anything. Anything that isn't real estate is personal property. When buying a house for the first time, all the new jargon can feel overwhelming. Home Buying Terminology Here are some home-buying terms that are good to get familiar with in alphabetical order. You just bought a home. No matter if someone has bought a home before or they’re looking for their first home, the terminology used can be confusing. It reviews the terms and costs of the mortgage, so you know what to expect. In the simplest terms possible, interest is what you pay a lender to borrow money. Home Buying Terminology . Some closing costs are tax-deductible. In most states, a broker is one step up from a real estate agent, having more training and the power to supervise agents. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! 1 Month Visit: This visit occurs 1 month after home closing. You can receive free copies of your credit report at www.annualcreditreport.com. There are a few terms to understand when initially looking into home mortgages. Buying a home shouldn’t be rocket science. Closing costs: All settlement or transaction charges (above and beyond the actual cost of the property) that home buyers (or sellers, depending on tradition in your area and what you negotiate with the seller) need to pay at the close of escrow when the property is transferred. * = Required Field I hereby give consent to be contacted by Fellowship Home Loans or its agents at the number provided regardless of any Do-Not-Call (DNC) list status of such number. Whether you’re looking to lend money to buy a home, a car, or pay for school, you want your interest rate to be as low as possible so you end up paying less over time. PITI: Abbreviation for the major expenses that make up a mortgage payment: principal (the amount borrowed), interest, (property) taxes, and (homeowners') insurance. I was waiting for something to go wrong with the process because of my past experiences with mortgage companies but they did everything they said they would do. This is how much will be paid each month for the mortgage, so it’s important to understand how much it will be and what percent of the PITI payment goes to each component each month. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Buying a home shouldn’t be rocket science. Escrow instructions: Written instructions, signed by a buyer and seller, telling an escrow agent what needs to happen before the deal closes. Telephone provider charges may apply. Such penalties have become rare. You can also ask your real estate agent or lender if there are other terms you are not familiar with, so you understand every part of the home buying process. Debt to Income Ratio – One of the things a lender will look at is the DTI, or debt to income ratio. This is done to cover property taxes, insurance, and other essentials to ensure they are paid. 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