Real Estate Glossary - Part 2
<Continued from Page 1>
Ginnie Mae (GNMA)
The Government National Mortgage Association is a government-owned corporation within the U.S.
Department of Housing and Urban Development (HUD) that buys government loans (FHA and VA).
home inspection
An inspection by a professional that evaluates the structural and mechanical condition of a house. The
inspector looks at structural, electrical, plumbing, roof, heating and cooling systems to find any defects.
Normally the buyer has a home inspection done and a satisfactory report is a contingency in the offer.
homeowner's warranty
A type of insurance often purchased by home buyers that cover repairs to items such as a furnace in
case it breaks down within the coverage period. Home sellers sometimes offer this warranty as an
added incentive to buy the house.
HUD
U.S. Department of Housing and Urban Development was established to created a suitable living
environment for all Americans by developing and improving the country's communities and enforcing
fair housing laws.
HUD-1 settlement statement
This document itemizes the funds to be paid at closing and shows the seller's net proceeds and the
buyer's net payment.
Interest
The "charge" for using the lender's funds.
legal description
A description, recognized by law, that is sufficient enough to locate and identify the property.
lien
A legal claim made against a property that must be paid off when the property is sold. Examples of liens
are the mortgage, tax lien, contractor lien, etc.
loan origination fee
A fee charged by the lender for processing the mortgage loan.
lock-in rate
An agreement by the lender at the time of mortgage application or shortly thereafter, to guarantee a
specified interest rate for a certain amount of time at a certain cost.
MLS (Multiple Listing Service)
A listing of all the properties for sale by member Real Estate Brokers in a given geographical area to
speed up the process to find a ready, willing and able buyer for a property.
mortgage broker
A mortgage loan company that originates loans and sells them to investors.
NIBI - National Institute of Building Inspectors
origination fee
The total number of points a borrower pays.
personal property
Any property that is not real property. Also called chattels.
PITI
Principal, interest, taxes and insurance.
point
1 percent of the amount of the mortgage loan.
pre-approval
A borrower has completed a loan application and provided debt, income, and savings documentation
which an underwriter has verified and approved.
pre-qualification
The loan officer’s written opinion of the ability of a borrower to qualify for a home loan. Not as strong as
pre-approval in the eyes of the seller since usually no credit check has been done.
principal
The amount of the loan that remains unpaid.
private mortgage insurance (PMI)
Mortgage insurance provided by a private carrier that protects lenders against loss in the event a
borrower defaults on the loan. PMI is required on most conventional loans with less than a 20%
downpayment.
purchase agreement
A written contract signed by the buyer and seller stating the terms and conditions of a property sale. In
the Peoria area it may be a form from the Peoria Area Association of Realtors entitled "Residential
Sales Contract".
real property
Land and anything of a permanent nature such as structures, trees, minerals, and the interest, benefits,
and rights inherent in real estate ownership.
REALTOR®
A real estate agent, broker or an associate with active membership in the NATIONAL ASSOCIATION OF
REALTORS®. Members of the PEORIA ASSOCIATION OF REALTORS® also hold active membership
in the ILLINOIS ASSOCIATION OF REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®.
recording
The act of entering or recording deed and/or mortgage information into public record with your local
county.
Regulation Z
Requires lending institutions to reveal to borrowers the true cost of obtaining credit (APR) due to the
Truth-in-Lending Act.
seller’s agent
A real-estate agent that works for and represents the property seller.
survey
Determining the precise legal boundaries of a property, including the location of improvements,
easements, rights of way, encroachments, and other physical features.
title
A legal document that is evidence of a person's right to or ownership of a property.
title search
A check of the public records to determine that the seller is the legal owner of the property and that there
are no liens or other claims outstanding.
transfer tax
State and/or local tax required when title passes from one owner to another. Tax stamps are affixed to
the deed.
VA mortgage
A mortgage loan made to a qualified veteran and guaranteed by the Department of Veterans Affairs
(VA).
zoning ordinance
Laws to regulate how a specific area and any property within it can be used. An area may be zoned for
single family residential, commercial, etc.
<Back to Page 1>
Ginnie Mae (GNMA)
The Government National Mortgage Association is a government-owned corporation within the U.S.
Department of Housing and Urban Development (HUD) that buys government loans (FHA and VA).
home inspection
An inspection by a professional that evaluates the structural and mechanical condition of a house. The
inspector looks at structural, electrical, plumbing, roof, heating and cooling systems to find any defects.
Normally the buyer has a home inspection done and a satisfactory report is a contingency in the offer.
homeowner's warranty
A type of insurance often purchased by home buyers that cover repairs to items such as a furnace in
case it breaks down within the coverage period. Home sellers sometimes offer this warranty as an
added incentive to buy the house.
HUD
U.S. Department of Housing and Urban Development was established to created a suitable living
environment for all Americans by developing and improving the country's communities and enforcing
fair housing laws.
HUD-1 settlement statement
This document itemizes the funds to be paid at closing and shows the seller's net proceeds and the
buyer's net payment.
Interest
The "charge" for using the lender's funds.
legal description
A description, recognized by law, that is sufficient enough to locate and identify the property.
lien
A legal claim made against a property that must be paid off when the property is sold. Examples of liens
are the mortgage, tax lien, contractor lien, etc.
loan origination fee
A fee charged by the lender for processing the mortgage loan.
lock-in rate
An agreement by the lender at the time of mortgage application or shortly thereafter, to guarantee a
specified interest rate for a certain amount of time at a certain cost.
MLS (Multiple Listing Service)
A listing of all the properties for sale by member Real Estate Brokers in a given geographical area to
speed up the process to find a ready, willing and able buyer for a property.
mortgage broker
A mortgage loan company that originates loans and sells them to investors.
NIBI - National Institute of Building Inspectors
origination fee
The total number of points a borrower pays.
personal property
Any property that is not real property. Also called chattels.
PITI
Principal, interest, taxes and insurance.
point
1 percent of the amount of the mortgage loan.
pre-approval
A borrower has completed a loan application and provided debt, income, and savings documentation
which an underwriter has verified and approved.
pre-qualification
The loan officer’s written opinion of the ability of a borrower to qualify for a home loan. Not as strong as
pre-approval in the eyes of the seller since usually no credit check has been done.
principal
The amount of the loan that remains unpaid.
private mortgage insurance (PMI)
Mortgage insurance provided by a private carrier that protects lenders against loss in the event a
borrower defaults on the loan. PMI is required on most conventional loans with less than a 20%
downpayment.
purchase agreement
A written contract signed by the buyer and seller stating the terms and conditions of a property sale. In
the Peoria area it may be a form from the Peoria Area Association of Realtors entitled "Residential
Sales Contract".
real property
Land and anything of a permanent nature such as structures, trees, minerals, and the interest, benefits,
and rights inherent in real estate ownership.
REALTOR®
A real estate agent, broker or an associate with active membership in the NATIONAL ASSOCIATION OF
REALTORS®. Members of the PEORIA ASSOCIATION OF REALTORS® also hold active membership
in the ILLINOIS ASSOCIATION OF REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®.
recording
The act of entering or recording deed and/or mortgage information into public record with your local
county.
Regulation Z
Requires lending institutions to reveal to borrowers the true cost of obtaining credit (APR) due to the
Truth-in-Lending Act.
seller’s agent
A real-estate agent that works for and represents the property seller.
survey
Determining the precise legal boundaries of a property, including the location of improvements,
easements, rights of way, encroachments, and other physical features.
title
A legal document that is evidence of a person's right to or ownership of a property.
title search
A check of the public records to determine that the seller is the legal owner of the property and that there
are no liens or other claims outstanding.
transfer tax
State and/or local tax required when title passes from one owner to another. Tax stamps are affixed to
the deed.
VA mortgage
A mortgage loan made to a qualified veteran and guaranteed by the Department of Veterans Affairs
(VA).
zoning ordinance
Laws to regulate how a specific area and any property within it can be used. An area may be zoned for
single family residential, commercial, etc.
<Back to Page 1>
www.greaterpeoriahomes.com
GLOSSARY
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Glossary - Page 1
Sponsored by Dave McMillin, Jim Maloof/Realtor®, East Peoria, IL
Copyright© 2007-2008 Greater Peoria Homes
Copyright© 2007-2008 Greater Peoria Homes
