Real estate lingo can sometimes alienate ordinary people, while it’s completely normal for those who practice it in their everyday lives. If you’re about to engage in real estate by either selling a house or maybe becoming a new homeowner, knowing these 12 real estate lingos are essential.
Learn these 12 common real estate lingos most people are confused about.
1. Debt-to-Income Ratio (DTI)
This allows lenders to calculate affordability based on their available loan programs and estimate how much you can afford to pay for a mortgage on a monthly basis. It is computed by total debt payments plus monthly housing payments divided by gross monthly income multiplied by 100.
2. Seller Disclosure
It is a disclosure made by the seller about the property that could influence a buyer’s choice to buy the property. This disclosure rests solely on the seller’s knowledge.
3. Days on Market (DOM)
DOM is the number of days between the day the property is offered for sale on the local real estate brokers’ multiple listing service (MLS) and the date the seller signs a contract to sell the property.
Amortization is the payment of principal and interest in monthly installments.
5. Comparative Market Analysis (CMA)
It’s a report on comparable homes in the neighborhood that’s used to figure out how much the house is worth, which you can also refer to in pricing your home.
6. Home Warranty
This guarantee covers future issues like plumbing and heating, which can be quite costly to repair.
When you refinance your home loan, you’re replacing your previous loan with a brand new one with different rates and payment schedules.
8. Assessed Value
This is the home’s value as determined by a public tax assessor, who does so to determine how much city or state tax the owner owes.
9. Multi-Listing Service (MLS)
A multiple listing service (MLS) is a database that allows real estate agents and brokers to search for and update information about homes for sale in their region.
10. Closing Costs
Closing costs, such as loan processing fees, title insurance, and excise tax, are typically included in the down payment, which typically amounts to two to five percent of the purchase price.
11. Title Search
It is the examination of public records for information about the home’s history, such as sales, purchases, and tax liens, among other sorts of liens.
To determine equity, deduct the home’s market value from any mortgages or liens on the property. The difference is the amount of equity you have in your property.