Go to the head of the class by learning these commonly used real estate terms – that might mean something different than you think:
Conditional or Contingent — Term for a listing under contract with a buyer but subject to an additional contingency or condition. The property with a conditional or contingent status remains available for showings and additional offers at the seller’s discretion.
Foreclosure (Also REO or Bank-owned) – A foreclosure results when a borrower is in default on a mortgage and the home is legally acquired by the lender. The property is sold by the lender, with proceeds being applied to the mortgage debt.
Pending sales vs. Closings – A home is considered ”pending” or under contract when a qualified buyer has offered a contract on a listed property and it has been accepted by the seller. A “pending” sale may also be subject to certain contingencies or conditions. The home is considered “closed” when the seller conveys the title to the buyer by deed, money changes hands and all documents are signed and recorded with the Register of Deeds in the county where the home is located.
Mortgage banker vs. Mortgage broker – A mortgage banker offers loan products of multiple lenders, controls underwriting and originates and funds their own loans. A mortgage broker originates loans, and then places those loans with a variety of other lending institutions. Allen Tate Mortgage is a mortgage banker.
Pre-qualified vs. Pre-approved – Pre-qualified refers to the loan officer’s written opinion of the ability of a borrower to qualify for a home loan, based on limited documentation and no credit check. Pre-approved means the borrower has completed a full loan application and provided detailed debt, income, and savings documentation which an underwriter has reviewed and approved, and he has undergone a credit check.
Short sale – A short sale occurs when a property is sold and the lender agrees to accept less money than is actually owed. It is an alternative to foreclosure.
Your Allen Tate Realtor® is the expert when it comes to helping you understand the real estate process. Don’t hesitate to ask when you come across an unfamiliar term. We’re happy to explain!