Looking to buy real estate - Need to know the glossary

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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.

Market changing

November 14, 2007 · Filed Under Frederick MD Real Estate, frederick real estate

2 Comments 

What is your definition of a bad housing market?

Frederick County Housing ReportI sit here and watch the national media and the local media tell everyone we are in the worse housing slump ever.  The market is horrible…the sky is falling!  Falling for WHO? 

I continue to get search engine hits like; “How bad is the Housing Slump in Frederick” “Are prices declining in New Market”  “What is the average days on the market in Brunswick”  “How to save from going to foreclosure” People are concerned, but still sitting on the fence, because the media telling everyone it’s the worse time to buy.

Early 2000s…houses were selling like crazy, buyers were backed up at the door writing contracts on the hood of the agent’s car, interest rates were low, lenders were writing loans in their sleep…We were in a “great housing” market?  For WHO?

Frederick County has more than 2300 homes on the market,  Washington County has almost 1500 homes, Montgomery County has more than 5900 homes, Howard county has more than 2000 homes, and Carroll Countyhas more than 1200 homes.  That is almost 13,000 homes with in 35 mile circle of the Frederick Area. 

It’s not bad for the media.  Real Estate magazines are fatter than they have every been, there are more are more ads in a Saturday and Sunday edition of the Frederick News Post and the Thursday edition of the Gazette.  There are signs on every corner on the weekends saying “Look at ME!!!” “Look at ME!!!”  So really who is this market bad for?

Definitely not the Buyers…First time home buyers and those that are looking for a second home or even a vacation property.  Sure, it maybe a little tougher getting a loan today, but here again tougher that what?  You have to do more that just breath to get a loan today.  And you know what, once you sign the papers on this loan, you shouldn’t have a worry in the back of your mind that you can’t actually afford it.  Lenders have tightened up their requirements after the debacle that we living through right now.   There isn’t anything called “Creative Financing” anymore.  It’s more like this:  Good Credit + Real Income + (optional) Down Payment = Loan to Dream House. 

Again who is it bad for?  Home owners that have bought their home in the last couple years and are trying to sell now.  Home owners that have fallen victim to bad loan advice and have not corrected it.  It’s bad for investors that are dumping their properties to get out of them.  (We are not dealing with the Stock Market)  It’s really bad for those that have to get out of their home quickly due to financial burdens. 

My advice…buy now!  But only buy, if you plan on living in your home for the normal time of 3-7 years.  Your home is a long term investment, not a short term high risk investment.  Buy the house because your family will grow up loving the area.   Prices are low, inventory is high…you have choices and homes are being presented in the best shape they have ever been in…why?  They want to sell to you.  Go Shopping!!!

Related posts;

  • Buying A House in Frederick MD What do you need to know?
  • Buying a house in Frederick Part two
  • Buying a Home in Frederick - Home inspections Part III —

Get off the Fence and Buy

October 22, 2007 · Filed Under Frederick MD Real Estate, frederick real estate

6 Comments 

Looking for Mortgage Lender in Mt Airy

Kevin Carey Mt Airy LenderI want to introduce you to a new member of my list of Preferred Lenders, Kevin Carey of Prosperity Mortgages. Kevin not only takes care of his clients mortgage needs, but also manages multiple offices. He has loan officers in Frederick, Hagerstown, and even in Cumberland Maryland. (if you are looking to finance your vacation home) Kevin Carey always answers his phone, don’t believe me call him now on his cell phone (301) 370-4169 and tell him you found him on FocusOnFrederick.com. Whether you are looking for a conventional 30 year fixed, an Interest Only ARM or even a Reverse Mortgage, Kevin of Prosperity Mortgage will get you the loan that is right for you. In today’s market you want someone to lead you in the right direction. Kevin will make sure you know what loan you getting. Prosperity Mortgage and Long & Foster have been helping people get into homes for a long time. They are industry leaders in this area.

List of Lenders that have provided excellant service.

Listed in Alphabetical order only.

October 17, 2007 · Filed Under frederick real estate

Comment 

55+ Active Adult Community Open House Sept 22nd

Frederick MD Real Estate

 Agents in my office are sponsoring an open house in Mill Crossing at Tasker’s Chance on September 22nd 11AM - 4PM.  You are invited to view the gorgeous model and sign up for prizes drawings.  If you are looking to downsize in to a maintenance free community, this is a definite must for you.

This Active Adult Condominiums community is convienent to shopping, restaruants and public transporation.  Located just off Route 40 and Route 15, this community is nestled in the village of Tasker’s Chance in Frederick, MD. 

Each Mill Crossing condo offers 2 bedrooms and 2 full baths, 9 foot ceilings, and a private balcony or patio.  As part of this Active Adults lifestyle, you will enjoy the use of the fitness center, community room, bistro and outdoor putting green. 

Click here to take a Virtual Tour of Mill Crossings at Tasker’s Chance

To see more of this Active Adult community, contact Ron Alexander or Sandra Cook at 301-663-1552.  You can email Ron directly by clicking here.

  • Open House September 22nd 11AM-4PM
  • 120 Burgess Hill Way, Frederick MD 21702
  • Normal Business hours are
    • Wednesday and Friday 11AM-3PM
    • Saturday and Sunday 10AM-4PM
  • Sales Manager Ron Alexander (301) 663-1552

September 19, 2007 · Filed Under Frederick MD Real Estate, frederick real estate

2 Comments 

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