“Happy Holidays” Are Here. Remember to Share Some Time for “Thankfulness” and Enjoy the “Journey.”

Here are some familiar – and helpful -real estate terms and definitions:
1.  Defining Monthly Debt:
Automobile,loan payments,college,education,repairs,mortgage, 
medical expenses,life/auto insurance,support funds (children and alimony)
2.  Household Income:
Disposable income for all members in the household, income before taxes/deductions, investment plans,Social Security, Permanent Disability,Retirement and long term verifiable funds from all sources of income
3.  Equity:
Ownership of a property where the “market value” is determined considering the balance owed on a mortgage and/or private recorded liens.
Also, applies to a “home equity” with a balance as well.
4.  Appraisal/Value:
Prepared by a Licensed Appraiser.  The appraisal value is determined by an analysis of recently closed comparable homes in the area of similar size, style and current closing dates.  The goal is to have the analysis agree with the contract sales price.
5. Mortgage:
Financing from Banks,Credit unions and other financial businesses that are able to lend. The property is the collateral, with a recorded lien, whereas the purchaser has to make timely payments.
6. Mortgage Insurance:
This is usually for real estate loans with an equity of less than 20% to be financed.  This is included in the monthly mortgage payment.  The insurance protects the lender.  The value of having the insurance is, in the event the “new” owner defaults on the loan, the insurance will be used by the lender to discharge a portion of the remaining balance. 
7.  Homeowners Insurance:
Covers the property and liability for any damages,
natural occurrences and accidents. The purchaser must submit the policy before the closing.  Homeowners insurance is required by the lender/bank.  
8.  Loan Types/Products:
Repayment terms range from 10-30 years for mortgages
Fixed interest rates
Adjustable interest rates
Conventional ~ standard product 
FHA ~ Federal Housing Administration  ~ Government
VA ~ Veterans Administration ~ U.S. Dept of Government Affairs
9. Downpayment:
A payment presented on the contract at the time of the signing, indicating the purchaser is making a financial commitment.
A lender has the option to request: 3% ;5% or 20% depending on the loan product. Veterans Certificate of Release DD214, (Honorable Discharge) has 100% financing.   
10.  Earnest Money Deposit:
 A buyer will pay a certain amount upon agreeing to purchase a home.
This is indicated on the contract of sale ~~ may be known as an “Escrow Deposit.”  Of course this occurs after the acceptance of the offer by the seller.  The funds are given in “Good Faith” by the purchaser.
11. Escrow:
Is an agreement between parties that certain funds will be held in care by a third party until required.  In this case a deposit for the purchase of a home. Example:  Real Estate~  purchaser signs the contract, presents a deposit to their agent, and that is held by a neutral party (seller agents company) and will be credited to the transaction at the closing.
12. Prepaids:
These are expenses paid at the closing: property taxes,mortgage balance,utilities,homeowners insurance on property being purchased,home warranty,sump pump certificate,HOA (home owner association) etc.
13. Property taxes:
Local governments impose taxes on real property and residential real estate.  The tax rate is set however, and may change annually, along with the assessment value on a property.
~City,County,School,Sewer,Water just to name a few
14. Deed:
The recorded document indicating title conveyance on a property
15. Survey:
Surveyor does a search to locate the property/land and explore it in person.
Is a written description of the measurements,location,address and details of the surrounding area.   Also, the surveyor will provide how the property can be used for future improvements. 
16. Lender Fees:
Closing costs/fee of the purchase may include the following: Attorney,recording,underwriting,origination,application etc.
17. Third – Party Fees:
Closing cost charged outside of the lender feesappraisal,survey of property,title search, insurance,certification certificates (sump pump inspection) 
18.  Closing Costs:
Lender fees,recording of documents,property taxes,transfer taxes,prepaids,escrows,homeowners insurance and HOA fees (homeowner assn.)
Enjoy your homes and surroundings more each day.🗝🏘 
Be safe and stay focused.
Hawwao Wajed / Real Estate Salesperson~Notary 
Keller Williams Realty 
Office: 716~832~3300
5500 Main Street,  Wlms., New York 14221 Suite#108