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Common Home Buying/Selling Terms

DOM

DOM ( Days On Market ) The amount of days the home or property has been listed for.

Earnest Money

Also knows as good faith money. Earnest money is put down when you make an offer or when your offer is accepted. The money will be held by the party instructed ( usually escrow ) and will go towards your closing costs or down payment at closing. 

Contingencies

A contingency is an out for a buyer or seller if a certain event doesn't occur. An example would be if a buyer put in an offer contingent to an inspection.  If the inspection doesn't go in favor of the buyer then the buyer can get their earnest money back.

Escrow

Escrow is a neutral third party that doesn't represent the buyer or the seller.  They are responsible for balancing out funds.

Title

The Title Co. is responsible for doing a title search and transferring title to the new buyers.

Points

Points are generally charged by the lender.  Each point represents 1% of the purchase price.  For example if you are getting a loan for $300,000 and it costs you 1 point it will cost you $3000.

In Escrow

In Escrow means that a buyer and seller have a mutually accepted offer and the contract has been signed to an escrow company to follow the written instructions until closing.

Closing

Closing is the result of a completed contract.  A property is closed when a seller receives their funds and the title is in the new buyers names.

ARM

An arm ( adjustable rate mortgage ) means that you have a loan without a set rate and it can adjust at different times.

FHA Loan

FHA insures loans made by banks and other private lenders.

VA Loan

A VA loan is a loan program available to military veterans.

Contingent

A contingent sale means that a buyer needs to sell their home before buying a the new one.

Down Payment

A down payment refers to the amount the buyer is putting down towards the loan.

Closing Costs

Closing costs are the costs involved when buying or selling a home.  It can include the escrow fee, realtor fees, title fees, and pre paids like taxes and insurance.

 

 

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