Helpful real estate words and phrases.

Agency - An Agency is a relationship with the seller and buyer where a agent has the power to act on behalf of another person, subject to the consent of the person being represented.

 

Balloon Loan - A balloon loan is a mortgage loan where monthly payments are not large enough to repay the loan resulting in a lump sum due on the final payment.

 

Credit Report - A detailed report of a individual person's credit, past and current employment, and residence history. A lender uses this information to determine if he is applicable of a loan or credit card. The Largest credit bureaus are Experian, Equifax, and Trans Union.

 

Disclosure - Disclosure is a statement listing information that is relevant to a property to a potential buyer.

 

Dual Agent - A dual agent represents both the seller and the buyer in a transaction.

 

Escrow - A neutral third party holds any documents and money for a real estate transaction until all conditions are met before any disbursement of funds or articles.

 

Fannie Mae - The Federal National Mortgage Association. It's a company that buys mortgages and resells them as securities on the mortgage market.

 

Home Equity Loan - A home equity loan is a loan that allows you to borrow from the equity of your home. Unlike a home equity line, you don't have a option to redraw in the future.

 

HUD - The U.S. Department Of Housing And Urban Development known as HUD is a federal agency that oversees the FHA otherwise known as the Federal Housing Administration and community and housing development programs.

 

Lease Option - A lease option contains the right to purchase the property for a certain price within a certain time.

 

Mortgage - A mortgage is money borrowed to purchase a home.

 

Mortgage Broker - A person who finds prospective borrowers and matches them with lenders who meet the criteria of the lender.

 

Open House - A marketing tool used by agents where a house is open to the public to view.

 

Seller Financing - The seller allows the borrower to use some of the equity to finance the purchase.

 

Timeshare - Timeshare is a vacation home or resort where you own it for a specific period of time.

 

Variable Rate Mortgage- Variable Rate Mortgage or VPM is a loan with a interest rate that changes on factors such as the rate paid on bank treasury bills, and bank certificates.

 

Zoning Ordinance - Set of laws that regulate and control the use of land, such as construction or improvements.