Say What? Home-Buying Lingo You Should Know

If you are a first time home buyer, or even a repeat buyer, you quickly realize that
real estate has a language all its own. Understanding some of the lingo can help
you navigate the process a little easier. By learning a few critical terms, you will be
in a better position to ask the right questions and make the best decisions.
• Buyer’s Market – A real estate climate where the amount of listings
outnumber qualified buyers.
• Seller’s Market – A real estate climate when there are very few desirable
properties listed for sale.
• Contingencies – Specific conditions included in an offer to protect the buyer
against unexpected situations, such as inspection, loan approval and
appraisal value.
• Earnest Money – Money deposited when the offer is accepted. Subject to
any contingencies, this money protects the seller from a buyer who simply
changes her mind.
• Escrow Agent – A neutral third party who manages the paperwork in a state
where attorneys are not used to conclude the contract.
• Closing Costs – Fees which must be paid by both buyers to conclude the
sale.
• Conforming Loan – A conforming loan is a loan limit by which the loan can
be sold on the secondary market; a jumbo loan is one which is higher than
this limit.
• PMI – private mortgage insurance (PMI) is a fee paid by the borrower of a
loan that they obtained with less than a 20% down payment.
These are just a few of the common terms used in central new york real estate. If you are involved
in a real estate transaction, learning a bit of the common lingo will help you
understand the process better and make your home sale or purchase a smooth
one.