Q: Active

An Active Property The property is actively for sale and on the market. The sellers may have received offers but have not accepted any yet. When an offer is accepted the property will become Pending the completed sale. If the contract falls through, typically the property will go Active again.

Question 1

Active

Libby Guthrie · Accepted Answer

An Active Property The property is actively for sale and on the market. The sellers may have received offers but have not accepted any yet. When an offer is accepted the property will become Pending the completed sale. If the contract falls through, typically the property will go Active again.

Question 2

Active Contingent

Libby Guthrie · Accepted Answer

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Active Contingent[/caption] Active contingent in real estate is a status of a property listing indicating that it is under contract, but that the sale is contingent on certain conditions being met. These conditions may include the sale of the buyer’s current home, the receipt of satisfactory inspection reports, or the approval of a loan. If the conditions are not met, the listing may revert to active status.

Question 3

Active-Contingent Offer

Libby Guthrie · Accepted Answer

[caption id="attachment_8973" align="aligncenter" width="1200"] What is an active contingent offer

What is an active-contingent offer?[/caption]

What Does Active-Contingent Mean?

Along the same vein, we often get the question about the meaning of “active contingent” in real estate. An active contingent offer is one of a variety of status updates given to a home listing. If a property has an active contingent label, it means the seller has accepted an offer from a buyer. But the home sale has certain contingencies that need to be met, and the seller is taking backup offers in case the first deal does not go through. Similar to contingencies being protection for the buyer, having the listing be active contingent offers protections for the seller. Having a home be active contingent can influence a buyer to release contingencies prematurely, or when they shouldn’t be, just so the “other guy” doesn’t get the house. This would be a mistake! Buying and selling real estate can be a very emotional time. Relying on your agent to guide you through the process is the best way to end in a result that you will be happy with!

Question 4

Adjustable-rate Mortgage (ARM)

Libby Guthrie · Accepted Answer

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Adjustable-rate Mortgage[/caption] What is an Adjustable-rate mortgage (ARM)? After an introductory period that could be 3, 5, 7, or 10 years, the interest rate on an adjustable-rate mortgage will be adjusted by the lender in accordance with current interest rates and your loan agreement. For instance, a 5/1 ARM will have a fixed rate for the first five years, then the rate will vary based on a variety of factors. Your lender will explain the details before you accept the loan. Typically, the interest rates on ARMs are lower for the fixed period which makes your payments more affordable during that period. However, the interest rate will generally go up along with your monthly payment after the rate is adjusted. Homeowners consider ARMs riskier as you can't predict what mortgage rates will be in the future. [social_warfare] Adjustable Rate Mortgage

Question 5

Amortization

Libby Guthrie · Accepted Answer

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Amortization[/caption] What is Amortization? The action or process of gradually writing off the initial cost of an asset. Do you know what kind of mortgage you have? Do you know whether your payments are going to increase over time? 📈 “Amortization” is the term used for the schedule of mortgage installment payments over a period of time. Typically, a buyer’s amortization schedule is one payment per month over 15 or 30 years. 📢 Important: 📝 There are both adjustable and fixed-rate mortgages. With an adjustable rate, the lender can increase the rate on a predetermined schedule, which would impact your amortization schedule. 📝 With a fixed rate, your payments with remain the same for the life of the loan, unless you refinance or there are changes to taxes or insurance.

Question 6

Appraisal

Libby Guthrie · Accepted Answer

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Appraisal[/caption] A professional analysis used to estimate the current value of the home in the real estate market. This is a necessary step in validating a home's worth to you and your lender as you secure financing. All parties to the transaction hope the appraisal will come in at the same amount as the listing price. If the appraisal comes in low, your options include backing out of the sale, having your agent appeal the low value, paying the difference in value in cash, and renegotiating the offer.

Question 7

As-is

Libby Guthrie · Accepted Answer

[caption id="attachment_10817" align="alignnone" width="760"] As-is

As-is[/caption] What does As-is mean? A contract or offer clause stating that the seller will not repair or correct any problems with the property. Also used in listings and marketing materials. In other words, selling a house as-is means that a buyer will get the property in its exact, current condition without any additional repairs or upgrades.

Question 8

Back on Market

Libby Guthrie · Accepted Answer

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Back on Market[/caption] What does Back on Market mean? The property was under contract with another buyer and their contract fell through, so it is Active again. BOM stands for “back on the market” in real estate and is a common abbreviation used by real estate agents.

Question 9

Backup Offer

Libby Guthrie · Accepted Answer

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Backup Offer[/caption] What is a backup offer? When an offer is accepted contingent on the fall through or voiding of an accepted first offer. Sellers may accept backup offers if they are not confident about the offer they have accepted. Consider it a safety net for the seller if the current offer does not close. There are also benefits for buyers.

Although it might seem like a long shot, putting an offer on a house that’s under contract actually has a reasonable chance of scoring you a home. Deals fall through for all kinds of reasons, so if you’re in the backup position, you’ll lock things in and keep a home from going back on the market.

As usual, discuss putting in a backup offer with your Realtor.

Question 10

Being Under Contract

Libby Guthrie · Accepted Answer

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Under Contract[/caption] Once you have made your offer and the offer is accepted by the seller, the following questions may arise. What does “under contract” mean? Under contract means that all parties have agreed on terms, have signed the contract, and the signed contract has been delivered to both buyer and seller. Payment of the escrow deposit is expected but is not a requirement to make a binding contract. What is escrow? The escrow money, escrow deposit, or good faith deposit is money that is included with an offer, or as soon as an offer is accepted, to show the seller that you are serious about moving forward with the purchase of the home. Because you forfeit this deposit if you back out of the purchase for any reason not allowed for in the contract, the larger the escrow deposit, the more seriously your offer is taken. This is not the same as the down payment. Do I need an inspection? We always recommend that you have a home inspection done. In the grand scheme of things, paying a few hundred dollars to have peace of mind that there are no hidden dangers or problems is well worth the money. The inspections you may need or want will vary depending on the home you are buying and the contract terms. Your agent will thoroughly discuss the inspections with you once your offer is accepted. How much are inspections? The cost of the home inspection depends on the size of the house and additional inspections requested, such as swimming pool, septic tank, termite/pets report, insurance, four-point (HVAC, plumbing, roof, and electrical,) wind mitigation, and radon. An average home inspection, without additional inspections, is about $300. I will give you my recommendations for inspectors, but you can choose your own if you wish. What if my loan doesn’t get approved? If you have gone through the pre-approval process and have been forthcoming with all the information requested by your lender, it’s unlikely you will be turned down, but it does happen. Make sure you do not change jobs, purchase big-ticket items on credit, take out a car or boat loan, or open any other new credit accounts while your mortgage is being processed. If your loan does fall through, talk with your lender about changing to a different loan type. When can I start moving? When you have the keys! When you are financing your purchase, it takes four to six weeks for your loan to be processed. Once the lender gives the all-clear, closing is scheduled. You will sign your loan documents and both parties will sign documents transferring ownership to you. Unless other arrangements have been agreed upon by both parties, the sellers should have completely vacated the home when they sign the closing papers. You can have your belongings ready to move, and a moving company scheduled before you go to closing. At closing, you will receive the documentation you need to provide utility companies with proof of your new residence. But seriously, everything is tentative until you have the keys! Even if the home is vacant, don't even think of starting to move until escrow has closed and you have the thumbs up from your agent.

Question 11

Bridge Loan

Libby Guthrie · Accepted Answer

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Bridge Loan[/caption] What is a bridge loan? This short-term financing option can help you bridge the gap between buying a new home and selling your old one. It enables you to tap into your existing home equity before you’ve sold. However, there are some issues to consider before you apply for a bridge loan: 👉 The interest rates and fees are usually higher than typical home loans. 👉 The equity from your current home will be used to secure the loan. 👉 The credit requirements are often greater for bridge loans than for standard financing. If you think you may need to “bridge the gap” between buying a new home and selling your current one, give us a call. We can discuss your options and refer you to a lender who can help. 📲 925-628-2436 📩 info@guthriegrouphomes.com

Question 12

Buyer's Agent

Libby Guthrie · Accepted Answer

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Buyer’s Agent[/caption] Buyer's agent: The agent who shows the buyer’s property, negotiates the contract, or offer, and works with the buyer to close the transaction.

You might have heard of buyer’s agents, selling agents, listing agents, and so on. You’re a buyer, so what is a buyer’s agent? True to their name, buyer’s agents help real estate buyers navigate the real estate market; they can also save you tons of time and money on the road to your new home.

Read more to learn how a real estate buyer’s agent can help you.

Question 13

Close of Escrow

Libby Guthrie · Accepted Answer

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Close of Escrow[/caption] Close of escrow is the final step in the real estate transaction. It is when the buyer pays the seller for the property and all the documents are signed. After close of escrow, the title deed is transferred to the new owner and the keys are given to the buyer. The escrow company then sends the money to the lender and all the parties involved in the transaction.

Question 14

Closing

Libby Guthrie · Accepted Answer

[caption id="attachment_10841" align="alignnone" width="760"] Closing

Closing[/caption] Closing: The end of a transaction where documents are signed, and funds are dispersed.

Question 15

Closing Costs

Libby Guthrie · Accepted Answer

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Closing Costs[/caption] Closing costs are the fees that the buyer and seller will owe associated with the home-buying process, such as the real estate brokerage commission and title insurance. Most are paid by the buyer, but the seller pays for some. The fees will vary with each transaction. Your lender or title rep will let you know what the fees are and how much you will need at the close of escrow. The fees required to complete the real estate transaction include points, taxes, title insurance, financing costs, and items that must be prepaid or paid through escrow.

Question 16

Comparable Sales

Libby Guthrie · Accepted Answer

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Comparable Sales[/caption] What are Comparable Sales?

Known in real estate as “comps,” comparable sales are the sales prices of similar homes and are based on the following:

Lot size

Condition

Age & Construction

Square footage

Close proximity

Time frame of the sale When it comes to buying or selling, both place high importance on comps to determine a home’s value. Contact our team for a

free consultation

to learn more about what homes are selling for in your area.

Question 17

Comparative Market Analysis (CMA)

Libby Guthrie · Accepted Answer

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Comparative Market Analysis[/caption] Comparative market analysis or competitive market analysis, aka CMA, compares the sales price of similar properties in the area to help determine the price of a property. A CMA estimates a home’s price based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and help buyers make competitive offers. If you need more details about CMAs, read “What Is Comparative Market Analysis (CMA) in Real Estate?“. Not to be confused with Country Music Awards. 🤓

Question 18

Condominium

Libby Guthrie · Accepted Answer

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Condominium[/caption] A condominium (Condo) is a type of housing where several people own separate units in a larger building or complex. Each unit is owned by an individual and the common areas, such as the lobby, pool, and gym, are shared by everyone who lives in the building. Condominiums are often popular because they are often located in desirable areas and offer amenities that single-family homes don't.

What is the difference between a condo and a townhouse?

A condo is a type of housing where several people own separate units in a larger building or complex. Each unit is owned by an individual and the common areas, such as the lobby, pool, and gym, are shared by everyone who lives in the building. A townhouse is similar to a condo, but it is usually smaller and more like a single-family home. Townhouses may have more amenities like a private backyard or a garage.

Question 19

Conforming Loan

Libby Guthrie · Accepted Answer

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Conforming Loan[/caption] What is a conforming loan? A conforming loan is one that is limited to $647,200 for most of the U.S., which means you may be able to avoid the stricter requirements of a jumbo loan. Loan limits vary over time and by location so you should check with your lender or Realtor for the latest information. Other loan types include jumbo loans, FHA, and VA.

Question 20

Contingency

Libby Guthrie · Accepted Answer

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Contingency[/caption] What is a Contingency? A provision of the contract that keeps the agreement from being fully legally binding until a certain condition(s) is met. For example, the purchase of a home can be contingent upon the buyer selling their home first. Every real estate contract includes space for “contingency clauses,” or conditions put forth by the homebuyer and home seller that must be met for the transaction to close. Here are some types of contingency clauses you might see in your next home sale… 📝 Home Inspection / Due Diligence 📝 Cost-of-Repair 📝 Appraisal 📝 Financing or Mortgage 📝 Sale and Settlement Contingency clauses can be tricky to navigate, which is why it’s always a good idea to have a licensed real estate professional guide you through the process. We know this lingo inside and out, so reach out if you’re thinking about buying or selling a home soon!

Question 21

Contingent

Libby Guthrie · Accepted Answer

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Contingent[/caption] In real estate, a contingent offer is an offer made on a property, which says that certain conditions must be met in order for the sale to be completed.

Question 22

Contract

Libby Guthrie · Accepted Answer

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Contract[/caption] A real estate contract is a legally binding agreement between two parties for the sale and purchase of a property. It outlines the price, terms, and conditions of the sale. It also includes any other agreements that the buyer and seller have made, such as repairs that need to be done before the sale is completed. All real estate contracts must be written and signed by both parties.

Question 23

Conventional Sale

Libby Guthrie · Accepted Answer

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Conventional Sale[/caption] Conventional sale: When the property is owned outright and has no mortgage. Conventional sales are often smoother transactions than those that require financing as there is no dependence on the buyer receiving a loan to purchase the property. A conventional sale is not to be confused with a conventional loan. In this instance:

“Conventional” just means that the loan is not part of a specific government program. Conventional loans typically cost less than FHA loans but can be more difficult to get.

This may sound confusing, so just ask your Realtor to explain it to you if you're not clear. ☺️

Question 24

Counteroffer

Libby Guthrie · Accepted Answer

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Counteroffer[/caption] A counteroffer is a response to a buyer's original offer on a house to make changes that better fit a seller's goals. A counteroffer is one step closer to an accepted offer! A counteroffer shows that the seller is willing to work with the buyer, but on slightly different terms (usually a change in the price or contingencies). Here’s how your real estate agent can help you navigate a counteroffer: ☑️ Buyers, we negotiate on your behalf and provide guidance on how to get your offer accepted. ☑️ Sellers, we help you stay clear of red flags and make sure you accept the right offer. Negotiation is a BIG part of what we do as real estate pros! Connect with our team to learn more about how we provide 5-star representation for our clients.

Question 25

Credit Score

Libby Guthrie · Accepted Answer

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Credit Score[/caption] What is a credit score? A number ranging from 300-850 that's based on an analysis of your credit history. Your credit score helps lenders determine the likelihood you'll repay future debts. You'll need a score of 620 or better, but you'll get better financing rates with a score of 720 or higher. There is much more to know about credit and credit scores, so feel free to ask if you have specific questions. To learn more about credit scores and credit reports, click here.

Question 26

Days on market (DOM)

Libby Guthrie · Accepted Answer

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Days on Market[/caption] Days on market (DOM) means the number of days a home has been listed on the market. The number of days the property has been on the market may reflect the desirability and/or pricing of the home. If the home has been on the market too long, the property may be stale.

Question 27

Deed

Libby Guthrie · Accepted Answer

[caption id="attachment_10990" align="aligncenter" width="1080"] Deed

Deed[/caption] In real estate, what is a deed? A deed is a document that shows who owns a piece of property. When someone buys a house, they get a deed that shows they are the owners. The deed has the names of the people who bought the house and is signed and notarized so it is legally valid. This is not to be confused with a deed of trust. A deed conveys ownership; a deed of trust secures a loan.

Question 28

Deed of Trust

Libby Guthrie · Accepted Answer

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Deed of Trust[/caption] What is a Deed of Trust? A Deed of Trust is like a mortgage. It is an agreement between a borrower (you) and a lender (a bank or other financial institution). The lender gives you money to buy a house or other property, and you agree to repay the loan with interest, in regular payments. The Deed of Trust also includes a clause that says if you don't make the payments, the lender can take the property back.

Question 29

Disclosure Statement

Libby Guthrie · Accepted Answer

[caption id="attachment_10868" align="alignnone" width="760"]<img class="size-medium wp-image-10868" src="https://guthriegrouphomes.com/wp-content/uploads/2023/01/Disclosure-Statement-B-760x760.png" alt="Disclosure Statement" width="760" height="760" /> Disclosure Statement[/caption]

What is a Disclosure Statement 🤔

Also known as a “Seller’s Disclosure,” this is a legal document that outlines any known flaws that a home seller is aware of that could negatively impact the home’s value 🏡

💡 TIP: Buyers should scrutinize this document closely with their real estate agent to fully understand the condition of a home.

Our best advice? When it comes to buying a home, make sure you get an inspection to confirm what has been disclosed is accurate and discuss any potential deal breakers with your agent.

Contact our team for a ✨ free consultation ✨ to learn more about what you must legally disclose if selling and how to ensure you don’t miss any important information if you’re buying!

Question 30

Down Payment

Libby Guthrie · Accepted Answer

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Down Payment[/caption] What is a down payment? The sum in cash that you can afford to pay at the time of purchase of a home or property. A conventional loan down payment is usually 20% of the sales price, but other types of financing require as little as 3.5% to 15%. Some 0% down programs are also available. A mortgage lender can tell you what types of loans you qualify for.

Question 31

Dual Agency

Libby Guthrie · Accepted Answer

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Dual Agency[/caption] The representation of opposing principals (buyers & sellers) at the same time. That is, one real estate agent represents both the buyer and the seller in one transaction (sale of a home).

Question 32

Due Diligence

Libby Guthrie · Accepted Answer

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Due Diligence[/caption] What is Due Diligence? How to prevent #buyersremorse 👇 When buying a home, it’s extremely important to do your “due diligence.” During this period, you’ll look into the condition of your chosen property and compare it to other homes like it to make sure it’s really a good fit and value. When a homebuyer investigates facts about the physical and financial condition of the property and its area before they make an offer and after their contract is accepted. Due diligence is reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling real estate. As your agent, we’ll guide you through this process by pointing out and addressing any of the home’s red flags so you feel completely confident about your purchase.

Question 33

Earnest Money

Libby Guthrie · Accepted Answer

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Earnest Money[/caption] What is Earnest Money? 🤔 A deposit made to a seller that represents a buyer's good faith to buy a home. It's typically around 1% - 5% of the sale price. Earnest money is a deposit from the buyer to the seller, made in good faith to show dedication to purchasing the property 🏡 IMPORTANT FACTS 👇 💰 The amount varies by market 💰 Goes towards the purchase of your home 💰 Protects the seller if a buyer backs out 💰 A buyer may get this money back – due to failed inspections or contingencies 💡 TIP: In a seller’s market, you may consider making your earnest money non-refundable. Our best advice? When it comes to buying in a low inventory, competitive market, it’s essential to partner with a Buyer’s Agent who understands how to make your offer stand out to sellers 🥊

Question 34

Easement

Libby Guthrie · Accepted Answer

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Easement[/caption] What is an easement? 🔎🏡 A right to cross or otherwise use someone else's land for a specified purpose. The term often crops up after buyers have made an offer on a home that’s been accepted, at which point a title search brings up the easement—which is essentially the legal right for someone else to use the property, or part of the property for a specific purpose. Say what? You bend over backward to buy a home and now you have to share?! Don’t worry, in most cases, it’s not as bad as it sounds. Types of Easements: 📝 Right of way: This is where a neighbor may need to pass through the property via a driveway to access the main road, a neighborhood playground, or a community feature (like a lake). 📝 Utility maintenance: This easement is typically granted to utility companies to run power and cable lines on a property. 📝 HOAs/condos: If you live in a condo or home managed by a homeowners association, odds are these institutions own much of the property—while residents have rights to pass through.

Question 35

Equity

Libby Guthrie · Accepted Answer

[caption id="attachment_10894" align="alignnone" width="760"] Equity

Equity[/caption] The equity in a home or property is the difference between how much your home is worth and how much you owe on your mortgage. So if your home is worth $500,000 and you owe $450,000 on your mortgage, your equity in the home is $50,000. See also home equity line of credit.

Question 36

Escalation Clause

Libby Guthrie · Accepted Answer

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Escalation Clause[/caption] What is an escalation clause? An escalation clause is a clause in a real estate contract that allows the purchase price of a property to increase if a certain condition is met. For example, if the buyer and seller agree to an escalation clause and the market value of the property increases, the buyer will have to pay more for the property than originally agreed upon. This clause is typically used when two buyers are competing to purchase the same property.

Question 37

Escrow

Libby Guthrie · Accepted Answer

[caption id="attachment_10896" align="alignnone" width="760"] Escrow

Escrow[/caption] Escrow as it relates to real estate is a process of holding money and documents in a secure account while two parties complete a purchase. Escrows are usually held by a Title and Escrow company. This gives the buyer and seller peace of mind that the transaction is safe and that the buyer will not be able to take the money and run. The escrow account ensures that the buyer has the necessary funds and that the seller will receive them when the transaction is complete. See also close of escrow.

Question 38

Expired

Libby Guthrie · Accepted Answer

[caption id="attachment_10879" align="alignnone" width="760"] Expired

Expired[/caption] What is an expired listing? A real estate listing that has expired and is no longer active, usually because it didn’t sell in the amount of time agreed upon by the listing agent and the owner of the home. Other reasons for a listing to expire are the asking price was not met, or there were other issues with the property. If you see an Expired listing, the owner may still be interested in selling. Ask your agent about it.

Question 39

FHA

Libby Guthrie · Accepted Answer

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Federal Housing Administration[/caption] What is the FHA? The FHA (Federal Housing Administration) is an agency of the US government that provides insurance for mortgages. This insurance helps make it easier for people to get approved for a loan and makes it possible for them to get a loan with a smaller down payment. The FHA also sets rules and standards for lenders to make sure that loans are fair and safe. See also FHA Loan.

Question 40

FHA Loan

Libby Guthrie · Accepted Answer

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Federal Housing Administration (FHA) Loan[/caption] What is an FHA Loan? A mortgage insured by the Federal Housing Administration – usually requires a good credit score and a down payment to qualify. An FHA loan is a loan that is backed by the Federal Housing Administration. It is designed to help people buy a home who may not have the money to make a big down payment. With an FHA loan, the borrower is able to make a smaller down payment and the government will help insure the loan, making it easier for the borrower to get approved.

Question 41

Final Walkthrough

Libby Guthrie · Accepted Answer

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Final Walkthrough[/caption] What is a final walkthrough? The last inspection of the property before signing the closing documents. A final walkthrough in real estate is when a buyer goes through the property one last time before the closing. The buyer makes sure that all the items in the contract are in the same condition they were in when the buyer agreed to purchase the property. This includes checking for any damage, making sure all appliances are working, and ensuring that all repairs agreed upon by the seller have been done.

Question 42

Fixed-rate Mortgage

Libby Guthrie · Accepted Answer

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Fixed-rate Mortgage[/caption] What is a fixed-rate mortgage? This mortgage's interest rate will never change, even if the term of the loan is 30 years. Fixed-rate mortgages typically have a term of 15 or 30 years. Homeowners prefer this type of loan as it has a lower amount of risk compared to variable-rate loans, and the monthly payment remains the same for the life of the loan.

Question 43

Foreclosure

Libby Guthrie · Accepted Answer

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Foreclosure[/caption] What is a Foreclosure? When the lender takes ownership of a property due to failed payments by the buyer. A foreclosure in real estate is when a homeowner stops making payments on their mortgage and the lender takes back the property. The lender will then try to sell the property to recoup the money that was owed on the mortgage. Foreclosures can often be a lengthy and expensive process for the lender and the homeowner. See also pre-foreclosure.

Question 44

FSBO

Libby Guthrie · Accepted Answer

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For Sale by Owner[/caption] What is a FSBO? FSBO stands for "For Sale by Owner". Often pronounced "fizbo". The owner of the home has it listed without an agent representation. The buyer's agent can usually still show the home, as many FSBOs will agree to work with agents representing a buyer. Be wary of FSBOs since rarely does the homeowner have the requisite knowledge, experience, and understanding needed to sell a property.

Question 45

HELOC

Libby Guthrie · Accepted Answer

[caption id="attachment_11013" align="aligncenter" width="1080"] HELOC

HELOC[/caption] What is a HELOC? A HELOC (Home Equity Line of Credit) is a type of loan that allows a homeowner to borrow against the equity in their home. The borrower can use the money for whatever they choose and the interest rate is usually lower than other types of loans. The loan is secured by the home, so if the borrower can't make payments, the lender can take the house. Sometimes a Home Equity Loan is a better choice for the borrower. Talk to your lender to find out more.

Question 46

Home Equity Loan

Libby Guthrie · Accepted Answer

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Home Equity Loan[/caption] What is a Home Equity Loan? A home equity loan — sometimes called a second mortgage — is a loan that’s secured by your home. You get the loan for a specific amount of money and it must be repaid over a set period of time. You typically repay the loan with equal monthly payments over a fixed term. If you don’t repay the loan as agreed, your lender can foreclose on your home. See also HELOC

Question 47

Home Inspection

Libby Guthrie · Accepted Answer

[caption id="attachment_10898" align="alignnone" width="760"]

Home Inspection[/caption] A home inspector examines your home for integrity - such as the HVAC system, electrical, plumbing, attic, flooring, foundation, etc.

Question 48

Homeowners Association (HOA)

Libby Guthrie · Accepted Answer

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Homeowners Association (HOA)[/caption] What is a Homeowners Association (HOA)? A private organization that is often formed by a real estate developer to manage homes and lots in a residential subdivision. A Homeowners Association (HOA) is an organization made up of homeowners who live in a specific neighborhood or development. The HOA is responsible for managing and maintaining the common areas of the neighborhood, such as parks and playgrounds. They may also have rules in place that all homeowners must follow, such as restrictions on landscaping or noise levels.

Question 49

How Do I Know If It’s Time to Buy Instead of Rent?

Libby Guthrie · Accepted Answer

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Is It Time to Buy?[/caption] If you know where you want to live, have a steady and secure income, and are ready for the responsibilities of homeownership, then it might be time to invest in a home. Read "5 Questions to Ask Before Purchasing Your First Home" to learn more about determining if now is the right time to buy for you.

Question 50

Inspections

Libby Guthrie · Accepted Answer

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Inspections[/caption] What are real estate inspections? Real estate inspections are when a professional inspector looks at a property to make sure it is in good condition. They will look for any potential problems that could affect the safety or value of the property. They will also check things like the roof, plumbing, and electrical systems to make sure they are in good working order. An inspection can help protect buyers from buying a property with hidden problems. There are a number of inspection types including home inspection, pest inspection, roof inspection, and more. Your Realtor will help you decide which inspections are appropriate for your situation.

Question 51

Jumbo Loan

Libby Guthrie · Accepted Answer

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Jumbo Loan[/caption] What is a Jumbo Loan? Conforming loan limits are $647,200 for most of the U.S., so anything above this would be a jumbo loan. Jumbo loan requirements are stricter and there are more requirements you will need to satisfy. Find out more about jumbo loans here.

Question 52

Lender

Libby Guthrie · Accepted Answer

[caption id="attachment_11018" align="aligncenter" width="1080"] Lender

Lender[/caption] What is a lender? A lender, AKA Mortgage Lender is an entity that issues mortgage loans. Typically, a bank, mortgage broker, credit union, etc. A mortgage lender is a bank or other financial institution that provides loans to people who want to buy a home. The lender will look at a person's credit history, income, and other factors to decide if they are eligible for a loan and how much they can borrow. The lender will also discuss the different types of mortgages available and the interest rate and terms of the loan.

Question 53

Listing

Libby Guthrie · Accepted Answer

[caption id="attachment_10902" align="alignnone" width="760"] Listing

Listing[/caption] What is a Listing? In real estate, the word “listing” is typically used to refer to the for-sale home or property itself, although it technically means the agreement between the broker and the owner of the home to market and sell the property. This is not the same as listing the property on the MLS (Multiple Listing Service).

Question 54

Listing Agent

Libby Guthrie · Accepted Answer

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Listing Agent[/caption] What is a Listing Agent? The real estate agent who represents the home seller during a real estate transaction.

Question 55

Market Value

Libby Guthrie · Accepted Answer

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Market Value[/caption] What is the market value of a home? The highest price in terms of dollars that a property will bring in a competitive and open market.

Question 56

Mello-Roos Taxes

Libby Guthrie · Accepted Answer

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What Are Mello-Roos Taxes?[/caption]

Mello-Roos Taxes – Definition

What is or are Mello-Roos? Sometimes misspelled “melarose”, these are special assessment taxes for Community Facilities Districts or CFDs. Typically new communities need additional infrastructures such as police and fire protection services, ambulance and paramedic services, parks, elementary and secondary schools, libraries, museums, and cultural facilities. These taxes are liens which are usually municipal bonds issued to fund this needed infrastructure before a housing development is built. These are in addition to your regular property taxes. When buying your new home, any unpaid special assessments are paid by the seller. The buyer (that’s you) will take title of the home subject to the condition that these special assessments will continue to occur in the future. That means you will be paying Mello-Roos taxes for as long as you own the home, or until they expire. The bonds issued for Mello-Roos may expire in 10 to 40 years, depending on the CFD. There are four Community Facilities Districts in Brentwood for instance, along with various other communities in California. To find out if the home you are looking to buy is in a Mello-Roos district, you have to know the parcel number of the property. We can do that for you! Also, the seller must disclose that the property has Mello-Roos taxes before you actually purchase, so you will know in advance either way.

Mello-Roos Tax – Conclusion

Let’s sum this up. Some homes in CFDs have special tax assessments called Mello-Roos. These communities benefit from having additional infrastructures such as new schools, libraries, and other community enhancements. Homebuyers in these districts will have to pay these taxes along with regular property taxes for as long as they own the home, or until the additional tax expires. You, along with your Real Estate Agent can determine if buying a home with Mellow-Roos is right for you.

Question 57

MLS

Libby Guthrie · Accepted Answer

[caption id="attachment_10912" align="alignnone" width="760"] MLS

MLS[/caption] What is the MLS? MLS stands for Multiple Listing Service. They collect, compile and distribute all information about homes listed for sale. The MLS is the organization real estate brokers use to search for and list properties for their clients. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listing websites, like Realtor.com or our own MLS listing search where the public can search the MLS at no charge. See also the term "listing".

Question 58

Mortgage

Libby Guthrie · Accepted Answer

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Mortgage[/caption] What is a Mortgage? A mortgage is a loan from a lender or bank that is used to purchase your home. BTW, the "t" is silent, so it's pronounced "more·guhj". A mortgage is a loan that a person takes out to buy a house. The borrower pays the lender back over time with interest. The mortgage is secured by the house, which means if the borrower can't make payments, the lender can take the house. Mortgages usually have a fixed interest rate and a set term (how long the loan will last). For instance, a common mortgage is a 30-year fixed loan. That is, the loan lasts for 30 years and the interest rate remains the same over the life of the loan.

Question 59

Mortgage Rate

Libby Guthrie · Accepted Answer

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Mortgage Rate[/caption] The interest rate on a mortgage loan you pay to borrow that money when buying a home. The lower the rate, the better. Mortgage rates vary daily, so you don't have any particular rate until the lender "locks in the loan" securing that rate for your home purchase. The rate you qualify for is based on your personal financial situation and the type of loan you are applying for.

Question 60

Natural Hazards Report

Libby Guthrie · Accepted Answer

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Natural Hazards Report[/caption] What are Natural Hazards Disclosure Reports? Natural hazards disclosure reports are reports that tell potential buyers about any natural hazards near a property. These hazards can include things like flooding, earthquakes, and wildfires. The report will also include information about potential risks associated with these hazards and what the buyer can do to protect their property. The report is usually provided by the seller before the sale is finalized.

Question 61

Offer

Libby Guthrie · Accepted Answer

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Offer (to Purchase)[/caption] What is an offer to purchase? Typically just an "offer", is when a buyer proposes certain terms and presents these terms to the seller. When you make an offer on a house, you and your agent will discuss the terms of your offer and submit the offer to the home seller's agent. Your offer may be accepted, or rejected, or the seller may submit a counteroffer.

Question 62

Open House

Libby Guthrie · Accepted Answer

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Open House[/caption] What is an Open House? During an open house, a seller's real estate agent or broker holds open hours during which the home is available for the public to view. Potential buyers may drop by anytime within the scheduled hours, without an appointment, to look at the house. You've probably seen real estate signs on the corner promoting an open house. These typically are seen on the weekend. The seller's agent may also add the home to a Brokers' Tour.

A brokers' tour is a regularly scheduled weekly event hosted by brokers for brokers featuring newly active properties in an “open house” format. It provides Realtors the opportunity to visually inspect properties included in the tour and to gain first-hand knowledge of them. - SF Gate

Question 63

Pending

Libby Guthrie · Accepted Answer

[caption id="attachment_10916" align="alignnone" width="760"] Pending

Pending[/caption] What does Pending mean? With a property that is pending, the property owner has accepted an offer from a buyer and they are under contract with that buyer. Their agreement may be subject to a variety of contingencies: inspections, appraisal, financing, and more. The home is not sold just yet. Typically if the sale does not go through, the house will return to “Active” status.

Question 64

Pre-Approval Letter

Libby Guthrie · Accepted Answer

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Pre-Approval Letter[/caption] What is a Pre-Approval Letter? It is a letter from a lender indicating you qualify for a mortgage of a specific amount. Getting Pre-Approved You’ll fill out a mortgage application, provide documents, and bank statements, get a copy of your credit report, etc. Getting pre-approved is what you need to do before starting a home search. The person selling your dream home will want to make sure you really are qualified to buy. Most sellers aren’t willing to accept your offer with only a pre-qualification.

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