Home Buying Glossary

Are you in the market for a new house or already in the process of buying a house?  There are some terms you should be familiar with:

Assessed Value ­ The value of a real estate property, based on a percentage of the house's overall market value, placed on a property by city or county assessors who  regulate property taxes.

Cash Reserve ­ The amount of money, determined by the lender, held in reserve as an addition to the down payment and closing costs.

Contingency ­ The term referring to any condition which has to be met before an agreement is confining.

Default ­ A failure to meet the legal requirements of an agreement. If homebuyers fail to pay their monthly payments on a mortgage they "default" in their payments.

Escrow ­ The term refers to the funds usually set aside and kept by a neutral third party who uses it to issue tax payments and insurance. (Also ESCROW ACCOUNT)

First Mortgage ­ The term refers to the primary loan taken against the property. The first mortgage has first claim in the event of default.

If you want to learn more terms associated with the home buying process, we encourage you to keep coming back to our blog.

If there are any terms associated with the home buying process that you are unfamiliar with, contact us or leave us your question below.

Home Buying Glossary

Are you in the market for new house or already in the process of buying a house? There are some expressions you should get acquainted with: 

Appreciation - An increase in the value of a property as a result of market change, renovation of a property, or other factors.

Comparative Market Analysis – It is a real estate analysis that assesses the current market value of a house by comparing it with other properties recently sold in the area.

Deed – (also referred to as a TITLE) A written document disclosing the ownership of the property, signed by current owners and including the legal description of a property.

Fair Housing Act – It is a law that prohibits any form of discrimination (on the basis of race, sex, religion, social status etc.) during the home buying process.

Homeowner's Insurance – Insurance that protects a property against damage from fire, storms and other hazards.

Zoning – The ability of a local government to decide about how land will be used in a particular area.  For example, a piece of land might be zoned for residential or commercial use.

If you want to get acquainted with more terms connected to the home buying process, we encourage you to keep coming back to our blog.

If there is any expression/vocabulary connected with the home buying process that you are unfamiliar with, contact us or leave us your question below.