Page 18 - Buying Your Home with RAREnorthwest

How To Speak Our Language
ARM Adjustable Rate Mortgage. The first number is the intial fixed term, the second number is how often the loan
will adjust after the initial term. i.e. 5/1 or 7/1
CLOSING Defined in the contract as once all documents are recorded and the proceeds of the sale are available to the seller. Once this happens the buyer is entitled to keys even if the actual possession of the home doesn’t happen until later. Our team tries to schedule closings on a Wednesday so that if something goes wrong we have two business days to fix it before the weekend.
CLOSING DISCLOSURE This is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).
CMA Comparative Market Analysis, the process of evaluating the market and comparable recent sales to determine the value of a subject property.
COMPS Comparable properties. Typically nearby geographically, similar age, finish level, lot size, etc. The more similarities the stronger the comp.
CONTINGENCY Different from the contingent status (see “status-contingent”). A contingency is any term of the contract in which proceeding is contingent upon an event, inspection, approval happening or not happening.
DOCS Specifically loan documents. The contract between you and your lender that include you repaying your loan. The receipt of docs by the escrow company is the point in time when we can guarantee a closing date. Typically, the date on the contract or 24-48 hours after docs arrive. Whichever is later.
EARNEST MONEY A good faith deposit by the buyer shows their intent to purchase. It is deposited to a trust account within 2 days
of Mutual Acceptance and protected by the buyer’s contingencies. If the buyer breaches the contract the earnest money is the seller’s remedy.
ESCALATION CLAUSE Ebay style bid where you make a starting offer and then state that you’ll go $xx over the next highest offer up to a ceiling of $yy. Unlike Ebay the seller knows what your ceiling is. Seller must provide proof of the other offer.
ESCROW A neutral third party that is the hub for the closing process.
FORECLOSURE The auction where homes can be purchased by the highest bidder for cash on the spot. FSBO For Sale By Owner. Yes, we can provide buyer representation on these homes!
HELOC Home Equity Line Of Credit.
HOA Home Owner’s Association.
HODs Home Owner’s Dues.
LISTING BROKER Seller’s broker/agent.
LISTING A property for sale on the NWMLS.