The Real Estate ABCs
With back-to-school season upon us, we thought it might be a good time to refresh our knowledge of
the Real Estate ABCs. Whether you’re a first-time or seasoned buyer or seller, it’s always good to
know your key terms! Have questions? Give us a call at 765.362.4123!
- Appraisal: An estimation of a property’s value by a qualified professional. The appraisal is specifically based on the recent sales of comparable properties.
- Balloon Mortgage: The time in which the full lump sum on a mortgage becomes due, even if it is amortized over a longer number of years.
- Closing: At closing, the property’s ownership transfers from seller to buyer. Closing usually takes place at a title company.
- Down Payment: The initial payment you submit for the purchase of your home. Indeed, different loan types require different down payment amounts. Ask your lender or your REALTOR® for more info.
- Earnest Money: A sum of money indicating the sincerity of your offer on a home. When you write a purchase agreement, you will be asked to write an earnest money check.
- FHA Loan: A government First Time Home Buyer Loan is a great option for many people. Ask your lender for more information.
- General Contractor: A handyperson who can help if you need to repair or replace items prior to selling your property.
- Home Warranty: A policy that provides you with repair and replacement services for certain items in your home.
- Inspections: Conducted by a qualified professional. Your inspectors will educate you about the condition of the home and all its major components. Specifically, inspections help to ensure that everything is working properly and safely at the property you are purchasing.
- Judgment Lien: A court order to pay a creditor. The creditor can use the judgment to place a lien on real estate. All judgments must be cleared prior to closing.
- Knob-and-Tube Wiring: The electrical standard for wiring commonly used between 1880-1930.
- Lender: Your lender helps you secure the best possible financing for the property you wish to purchase.
- MLS: The Multiple Listing Service is a database that REALTORS® use to search for properties.
- National Association of REALTORS®: The National Association of REALTORS® is “America’s largest trade association, representing 1.4 million members, including NAR’s institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries.”
- Origination Fee: A fee charged by your lender to prepare loan documents, check your credit, etc.
- Purchase Agreement: A contract between the buyer and seller of a home. Your REALTOR® will write the purchase agreement with you and answer any questions you might have.
- (Pre)Qualification Letter: A document from your lender’s institution which indicates your financial ability to obtain a mortgage with a certain loan type and up to a certain amount.
- REALTOR®: “REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.”
- Seller’s Residential Disclosure: In this document, the seller indicates the effectiveness of all major systems and components of the home. Specifically, these include heating and cooling systems, roof, etc.
- Transaction Coordinator: The transaction coordinator works with you and your REALTOR® from the day a purchase agreement is accepted until closing. The Transaction Coordinator will schedule your inspections and appraisal, make sure that all documents are signed and filed properly and on time, and communicate every step of the way with you. To learn more about our Transaction Coordinator, click here!
- USDA Loan: A government loan applicable to homes in rural areas. The entire Crawfordsville area is eligible for USDA financing. Ask your lender for more information.
- VA Loan: A government loan applicable to veterans. Ask your lender for more information.
- Waiver (COVID-19 Showing Disclosure & Waiver): A new form that must be signed by any persons entering any home. This waiver states that you 1) agree to disclose whether you or someone you know becomes symptomatic of and/or diagnosed with COVID-19; 2) understand that you are entering the home during an unprecedented circumstance; and 3) agree to adhere to the safety guidelines set forth by the CDC, including the use of masks and social distancing practices.
- X: Marks the spot where you’ll need to sign any documents required to buy or sell a property.
- Yield: The annual income from an investment property.
- Zillow: One of the most common sites that buyers and sellers use to search for a REALTOR®. Did you know that our Broker/Owner, Lisa Taylor, has over 200 five-star Zillow reviews? Click here to read a few client testimonials!
If you have any further questions about your Real Estate ABCs, please reach out to us! Our office hours are 8:30-5:30 M-F. Our phone number is 765.362.4123.