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Real Estate Lingo Buyers Need to Know

Real Estate Lingo Buyers Need to Know

Every profession has its own vocabulary. Physicians, engineers, even hardware store owners internalize the language that is specific to their area of work. So it should come as no surprise that real estate agents also have their own lingo - and it behooves the buyer to be familiar with it. In this entry we will examine a few of the most common words used in the real estate business.

Appraisal - a formal determination of the value of an item - in this case a piece of property and/or the dwelling on which it sits.

Adjustable rate mortgage (ARM) - this is a loan for a mortgage that can fluctuate according to market influences such as Treasury Bill averages over the course of a certain time period.

Assumable mortgage - a home mortgage where the incoming buyer can assume the current mortgage from the seller. The buyer must be approved by the lending agency for this to occur in most instances.

Closing costs - these are the various and sundry transaction charges that are part of the purchase process but not part of the cost of the home itself. It may be prepaid interest, filing fees, inspections and more. The buyer should ask about these prior to signing the mortgage.

Conveys with sale - something is included in the sale of the home at no extra charge such as appliances or draperies.

Contingency - a contract provision that states its terms can be voided or altered if certain conditions do not occur. For example, a buyer may stipulate that the purchase of the home is null and void if the home does not pass a termite inspection.

MLS - a real estate acronym that means Multiple Listing Service or System. It allows a broker to work with competing agencies for the purpose of disseminating information about an available piece of property.

Pending - this indicates that a sale is in progress, an offer has been made.

Private Mortgage Insurance (PMI) - this is insurance for the lender if the buyer were to default and/or the property were to go into foreclosure and the price for which the property is sold is less than the amount owed to the lender. Home buyers who do not put down 20% are usually required to purchase PMI.

Title - this shows ownership of property and comes in the form of a deed that is formally recorded in the county land records office.

Of course, this article alone is not enough to make you a real estate expert but it should help! Well-educated is well-armed as a prospective home buyer! Our goal is to provide you with the most up-to-date and relevant information on the subject of home buying. We invite you to visit our website to read more!

About the Editor

Arun Kumar

The old adage is that hindsight is always 20/20. Seven years ago, I embarked on a journey as a serial entrepreneur. I built my very first business in India and later expanded to the US. In weathering the ups and downs of several business brands, I discovered my passion for the digital platform.

I could see a huge opportunity to connect home buyers and sellers with quality information and service providers. That led to the birth and co-founding of HelpFindingMyAgent.com


Arun Kumar
Co-Founder of HFMA

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