Looking to buy real estate – Need to know the glossary
November 14, 2007 by Bob Carney
Filed under frederick real estate, Real Estate Topics
Buying and selling real estate can be confusing. That is one reason you should always hire a trained professional… a REALTOR®. While this might be your first or fifth transaction. REALTOR® will guide you through the sea of paperwork and keep you informed of your options. If you are looking to buy or sell real estate in Frederick County, you need a local expert. I don’t need to tell you that “I are one” You can see that I am very involved with functions and events in Frederick MD. I enjoy being part of this community and I would enjoy helping you settle down in this area.
I traditionally like to write something educational about real estate on Wednesdays… So here’s my tidbit of knowledge for you today.
Glossary of Real Estate Terms
| Term | Definition |
|---|---|
| Closing | The final procedure in which documents are signed and recorded, and the property is transferred. |
| Closing costs | Expenses incidental to the sale of real estate, including loan, title and appraisal fees. |
| Closing statement | A document which details the final financial settlement between a buyer and seller and the costs paid by each party. |
| Contingency | A condition specified in a purchase contract, such as a satisfactory home inspection |
| Contract to purchase | A contract the buyer initiates which details the purchase price and conditions of the transaction and is accepted by the seller. Also known as an agreement of sale. |
| Credit history | A record of an individual’s current and past debt payments. |
| Credit report | A credit bureau report that shows a loan applicant’s history of payments made on previous debts. Several companies issue credit reports, but the three largest are Trans Union Corp., Equifax and Experian (formerly TRW ). |
| Deposit | Money given by the buyer with an offer to purchase property. Also called earnest money |
| Earnest money | Money a buyer gives with an offer to purchase a property. Also called a deposit. |
| As-is condition | The purchase or sale of a property in its existing condition |
| Gift | A cash gift a buyer receives from a relative or other source. Lenders usually require a “gift letter” stating that the money will not have to be repaid. |
| Good-faith estimate | An estimate from an institutional lender that shows the costs a borrower will incur, including loan-processing charges and inspection fees. |
| Gross income | The total income of a household before taxes or expenses are subtracted |
| HUD-1 Uniform Settlement Statement | A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing |
| Home inspection | An examination of a homes construction, condition and internal systems by an inspector or contractor prior to purchase. |
| Home warranty | A type of insurance that covers repairs to certain parts of a house and some fixtures. |
| Homeowners association | A group that governs a modern subdivision or planned community. An association collects monthly fees from all owners to pay for maintenance of common areas, handle legal and safety issues, and enforces the covenants, conditions and restrictions set by the developer. |
| Homeowners insurance | This insurance includes hazard coverage for any damages that may affect the value of a house, in addition to personal liability and theft coverage. |
| Homeowners warranty | Special insurance policies that cover certain home repairs for a specified amount of time. |
| Inspection report | An examination of a homes exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior. |
| Latent defect | An invisible problem in a piece of property such as bad wiring, termite damage or lead paint. |
| Mortgage insurance | Required by lenders in some loans to protect them from a possible default. All conventional loans with less than a 20 percent down payment require private mortgage insurance, or PMI. |
| PITI (Principal, Interest, Taxes, Insurance) | When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower’s actual monthly mortgage-related |
| Radon | A ground-generated radioactive gas that seeps into some homes through sump pumps, cracks in the foundation and other inlets. A leading cause of lung cancer, radon is found in mostly the northern half of the country. |
Have a great day. And remember, it’s always a great day to buy.
Bob is a licensed Real Estate agent in Maryland and Pennsylvania. You can contact him via email at bob@gotbob4homes.com or call him on his cell phone at 240-285-4918. Bob left the Frederick area to manage a resort office near Deep Creek Lake in Western Maryland. He still stays in touch with the area that he has grown to love. 
Bob Carney
Nice Site!