Find Your Home!

Monday, June 07, 2010

Third party Approval Does Not Mean I Have To Get My Wife's Permission....and other real estate terms

Every business field has its own language.  Real estate is no different.

Not long ago I had someone ask me what a short sale was and how do you find one. I explained the definition of a short sale ending with the contract required "third party approval." Then they asked what that meant. (Bank must approve any offers).

So here are a few real estate terms...
  • Short sale - a sale of real estate where the sale proceeds fall short of the balance owed on the property's loan.  A short sale is often used as a way to avoid foreclosure. 
  • Appraised value - A property's fair market value, based on an appraisal using mostly recent comparable sales. 
  • Closing costs - Closing costs are settlement charges occurring at the closing. They can be pre-paid items like taxes or insurance or fees associated with loans, etc.  Your lender is required to give you with a good faith estimate of the known charges (estimate) within three days of receiving the loan application. 
  • Discount points - Relates to mortgages (primarily FHA and VA) and refers to any "points" paid.  A "point" is one percent of the loan amount. 
  • Escrow - Earnest money deposit is put into escrow until delivered to the seller when the transaction is closed. This tells the seller the buyer is serious!
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.  

Whether your interest lies in a 55+ community such as Heritage Isle, a golf course community such as Baytree National Golf Links or water front, give me a call!

Follow by Email