Real Estate Acronyms
HOA
What is Homeowners Association?
A "snapshot" of an opinion of the value of a real Estate property (required by bank for closing). This term is used to describe a professional estimate/opinion on the value of real estate.
What is an appraisal?
What is the term for the initial payment made by a buyer to the seller to secure a property purchase? Usually 20% is required.
What is a Down Payment?
The largest factor in determining one's credit score.
What is payment history?
In The Wizard of Oz, Dorothy said, "There is no place like home!"... Her home was in this tornado prone state.
What is Kansas?
Metes & Bounds, Lot & Block, Rectangular System
What are the three major methods used to describe land in legal documents?
PITI
What is Principal, Loan Interest, Property Taxes and Homeowner's Insurance?
A document (letter from bank) that a buyer should have before looking for real estate. this is the 1st thing you should get when deciding to buy a home.
What is pre-approval letter from bank
What is the term for the increase in the value of property over time. This is the "owners financial interest (increase) in a property. The difference between the market value of a property and the amount owed on the mortgage.
What is Equity (Appreciation)?
The cost of borrowing money. What the bank charges you each month for giving you the loan.
What is Interest?
The most expensive place (state) to buy a home.
What is Hawaii?
43,560 sq ft
What is an acre?
ARM
What is an Adjustable Rate Mortgage ?
The legal document that is used to transfer title of a property from one owner to another. (Proof of ownership).
What is a Deed?
Pays for Schools, Police, Fire, Ambulance and all costs to run a town.
What are property Taxes?
The single best way to build a positive credit score.
What is making on-time monthly payments?
This Real estate board game became the best-selling game in America just one year after it was created.
What is Monopoly?
Liens, Easements, Encroachments, Nuisances, Private Restrictions
What are Encumbrances?
FHA
What is the Federal Housing Administration?
A policy that insures your home and property against damage and liability.
What is a Home Owners Insurance Policy?
A graduated payment mortgage that has payments begin with low interest rate then increase throughout the duration of the loan.
What is Adjustable Rate Mortgage (ARM)?
The 2 most popular types of mortgages
What is Fixed and Adjustable (ARM)?
Elvis Presley's home is named this.
What is GRACELAND?
Capacity, Mutual Consent, ______, ______, and ______ are needed for a valid real estate contract.
What is In Writing, Lawful Objective, and Consideration?
MLS
What is Multiple Listing Service?
A policy that is required at CLOSING that protects you against any future claims of others to have an interest in your property. Protects your right to Title (deed) of the property.
What is Title Insurance?
Obtaining a new mortgage on your current home, usually to obtain a lower interest rate.
What is Refinancing?
A government backed mortgage
What is FHA or VA loans?
The most expensive residence in the world (hint: One ruled the 7 seas).
What is Buckingham Palace?
Requires a Lead-Based Paint Disclosure
What are houses built before 1978?