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Friday, September 20, 2019

Open Houses Sunday September 22nd 2019

Join our team this Sunday September 22nd from 2-4 at two Open Houses! 10105 Cedar Garden is a wonderful 3 Bedroom, 2 Full Bath Ranch with fenced in yard & In ground Pool! 4344 Accomack Dr is a ...  Read More

Friday, September 13, 2019

Open Houses Sunday September 15th 2019

Open House in Louisville KY Sunday September 15th 2019 2:00-4:00pm 17205 Polo Fields Ln, Louisville, KY 40245 MLS#1536778 Directions: I-265 to Shelbyville Rd East, Lt onto Flat Rock Rd, Lt onto Polo ...  Read More

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Real Estate Terminology A-Z

The below list of common real estate terms is offered as a benefit to our clients and community members.  Should you have additional questions about terminology used in real estate, we are always available to help.  Contact At Home In Louisville Real Estate Group with any questions or to gather additional information about Buying or Selling a home in Louisville, Kentucky.

Acceptance:  The acceptance date occurs when both parties, buyer and seller, complete signing and/or initialing the contract

Adjustable Rate Mortgage:  An adjustable rate mortgage allows the lender to change the mortgage's interest rate periodically.  The interest rate is altered on the basis of changes in a specified index. The interest rates can move up or down, depending on changes in the market.

Application: The document used to apply for a mortgage loan.  The document usually contains information about a buyers personal income, unpaid debts, and current assets.

Amortized Loan:  Payments are made in equal installments throughout the life of the loan.

Appraisal:  An appraisal is estimate of real estate value.  

Appreciation:  Appreciation occurs when property rises in value for some reason, often based on changes within the market. 

Assumable Mortgage:  Allows a purchaser to take ownership of real estate with an existing mortgage and assume responsibility for the unpaid balance of the mortgage.

Broker: Most real estate agents work under a broker.  Some real estate agents are also brokers.  A broker is an individual who has completed all state requirements and is therefore authorized to act as an agent for the sale of land.

Cloud on Title:  An outstanding claim on a property which may or may not be proven valid.  A true outstanding claim may impair ability to pass title.

Closing Costs: Fees associated with a closing that are not included in the purchase price of a home.  Some fees are mortgage related and others are government imposed.

Consideration:  Anything of value used to pursuade another to enter into a contract.  Examples include services, money, promises, etc.

Contingency: A specified condition that must be met before a contract is legally binding.

Deed:  A written instrument, which (once executed and delivered) conveys title to a property.

Discount Points:  A loan fee charged by a lender of FHA, VA or conventional loans to increase the yield on the investment.  

Document Preparation: Appropriate forms that are prepared for conveyance and settlement.

Earnest Money: A sum of money tendered by a potential buyer presented as good faith which is submitted along with an offer to purchase. 

Examination: Verification of the legal owner and debts owed.

Easement:  The right to use the land of another.

Encumbrance:  Anything that limits the title to a property.  Examples can include an easement, title restricion, lien, etc.

Equity:  The value of ownership and/or interest in a property. Equity is obtained by subtracting the total of all liens from the fair market value of the property.

Escrow Payment:  A portion of an individual's monthly payment that is held in trust by the lender.  The funds held are used to pay hazard insurance, property taxes, and other fees as they become due.

FHA Insured Mortgage:  A mortgage under which the Federal Housing Administration insures loans made, according to its regulations.

Fixed Rate Mortgage:  A loan whose interest rate remains fixed at a predetermined rate for the duration of the loan.

Foreclosure:  Procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default.

Home Inspection: A home inspection is performed by a professional.  During a home inspection the structural and mechanical condition of a property is evaluated. 

Home Warranty: A type of insurance that covers repairs to certain items in the home should they break down within the coverage period. 

Lease Purchase Agreement:  A buyer makes a deposit for the future purchase of a property and has the ability to lease the property in the interim.

Lease with Option:  A contract, that gives an individual the right to lease a property at a specified price with the option to purchase the property at a future date.

Loan to Value Ratio (LTV):  The ratio of the mortgage loan principal (amount to be borrowed) to the property’s appraised value. 

Mortgage:  A legal document that pledges a property to the lender as security for payment of a debt.

Mortgage Insurance Premium (MIP):  The amount paid by an individual for mortgage insurance.  Mortgage insurance provides protection to the investor in the case of a borrower’s default on a loan.

Note:  A written promise to pay a certain amount of money.

Origination Fee:  A fee paid to a lender for services provided when granting a loan.  This is generally a percentage of the loan amount.

Private Mortgage Insurance (PMI):  See Mortgage Insurance Premium.

Rate Lock: A commitment issued by a lender to a borrower promising a specific interest rate for a specific time period and price.

Right of First Refusal: A provision in a contract that requires the owner of the property to give another party the first opportunity to purchase before the property is offered for sale to others.

Second Mortgage / Second Deed of Trust / Junior Mortgage / Junior Lien:  An additional loan imposed on a property along with a first mortgage.  A second mortgage usually has a higher interest rate and shorter term.

Settlement Statement (HUD-1):  A financial statement document that is provided to both buyer and seller at the time property ownership is transferred.  The statement provides an account of all funds received or expended.

Tax Check: The Title Company contacts the various assessor-collectors to determine what taxes are owed on the property.

Title Insurance:  An insurance policy that protects the insured (buyer or lender) against loss arising from defects in the title.

Title Search:  A check of title records is performed to ensure that the seller is the true legal owner of a property and that there are no oustanding claims or liens. Copies of public records are gathered and examined including deeds of trust.