CLICK TO GET FREE RELO PAK!
MORTGAGE
INFORMATION PRE-QUAL ON LINE
CLICK
TO SEE ALBQ. AREA INFORMATION PAGE (new school scores)
HOMES in Albuquerque.
RIO
RANCHO NEW MEXICO HOMES west Albuquerque.
CORRALES NEW MEXICO HOMES
north river Albuquerque
PLACITAS NEW MEXICO HOMES
north of AlBUQUERQUE
LOS
LUNAS NEW MEXICO HOMES south Albuquerque
TRISH & CHUCK'S EXPLANATION OF MORTGAGE & HOME BUYER'S TERMS
EVERYTHING YOU NEED TO KNOW ABOUT MONEY IN NM HERE!
Add-on Rate: A type of loan repayment plan arranged to divide the
principal into equal installments. Interest is added-on to the principal,
resulting in high initial monthly payments that, over time, are reduced as
the principal balance is reduced.
Adjustable Rate Mortgage (ARM): A mortgage in which interest and payment
rates vary periodically, based on a specific index, such as 30 year Treasury
bills or the Cost-of-Funds index.
Adjustments: Money credited to either/both buyer and seller at closing,
including real estate taxes, price adjustments based on disclosures in the
inspection, etc.
Agent: A licensed person who represents the seller (and/or buyer) and who
provides market assessment, sales or buying strategy, recommends various
services and sources important to the seller or buyer.
Amortization: A method by which monthly mortgage payments are equalized
over the life of the loan despite the fact that the proportion of principal
to interest changes.
Appraisal: Professional and unbiased written opinion of property's
value based on recent, comparable sales, quality of construction and
current condition, and style of architecture.
Asking Price: The price at which the property has been placed on the market
for sale.
Assessor: A municipal or county official who determines the value of
properties for the purpose of taxation.
Assumption of Mortgage: The buyer assumes liability for an existing
mortgage held by the seller, subject to approval by the lender.
Balloon Mortgage: A short-term mortgage, generally at a fixed rate of
interest, to be paid back in pre-determined, equal monthly payments,
with a large, final payment for the balance of the loan paid at the end
of the term.
Binder: Generally a small amount of money from the buyer, accompanying
a brief written offer to buy. (See Earnest Money).
Broker: A person licensed to represent home buyers or sellers for a
contracted fee. Most real estate offices are managed by a broker who
employs licensed sales agents to sell the properties.
Cap: A limit on the total amount an interest rate can be increased.
(see ARM).
Closing: The final settlement at which time the title is transferred
from seller to buyer, accounts are settled, new mortgages signed, and
all fees and expenses dispersed or satisfied.
Closing Costs: All fees, taxes, charges, commissions and other costs
paid by buyer and/or seller at the closing.
Commission: A previously agreed upon percentage of the home's sale price
paid to the listing and selling agent(s).
Comparable: Closely similar properties in type, size and price that have
changed hands within recent months, used for comparison in the appraisal
report.
Condominium (Condo): Real estate ownership in which a property owner has
title to a specific unit, but shared interest in the common areas.
Conventional Mortgage: Most popular home financing form not insured by FHA
or guaranteed by VA. Available from many lenders at varying rates, terms
and conditions.
Conversion Clause: Clause in an ARM permitting conversion from an
adjustable to a fixed-rate loan.
Cooperative (Co-op): Real estate ownership in which all property
owners (shareholders) own the entire property and each shareholder
has proprietary rights to specific units.
Counter Offer: An offer made by a buyer or seller to the other party,
responding to the asking price or a subsequent adjustment to that price
to complete a purchase or sale.
Curb Appeal: A term used by Realtors including all that a buyer sees
from the street that may induce the buyer to look more closely at the
property.
Deed: A legal "instrument" that conveys the title to a property from
seller to buyer.
Down Payment: The buyer's payment to the seller at the time the sales
contract has been mutually agreed to, or at closing, for the percentage
of the total purchase price required by the buyer's mortgage loan.
Earnest Money: Money paid by the buyer at the time an official offer to
purchase is submitted to the seller, intended to demonstrate the good
faith of the buyer to complete the purchase. Earnest money is applied
against the purchase price, however, it may be forfeited if the buyer
fails to complete the purchase under the terms of the sales contract.
Equity: The difference between the sale price of a property and the
mortgage on the property.
Escrow Account: A third party account used to retain funds including the
property owner's real estate taxes, buyer's earnest money or hazard
insurance premiums.
Fair Market Value: The highest price an informed buyer will pay, assuming
there is no unusual pressure to complete the purchase.
Fannie Mae: Federal National Mortgage Association (FNMA), is a privately
owned corporation created by Congress to buy mortgage notes from local
lenders and provide guidelines for most lenders to use to qualify borrowers.
FHA Insured Mortgage: The Federal Housing Administration makes available
through banks and other lenders, insured mortgages with low down payment
requirements.
Fixed-Rate Mortgage: A mortgage that has a set interest rate and is
basically unaffected by interest rate changes.
Graduated Payment Mortgage: This mortgage offers low initial monthly
payments with increase at a pre-determined rate, hten cap at a final
level for the duration of the mortgage.
Hazard Insurance: Often confused with "Hone Owner's" insurance, it's
designed to compensate for specific hazards including fire and wind.
An "all-risk home owner's policy" provides more complete coverage.
Home Inspection: A formal survey of a home's structure, mechanical
systems and overall condition, generally performed by a licensed
professional inspector.
Home Warranty: A policy available to the buyer or seller as assurance
against unanticipated home repair costs.
Homeowner's Policy: A hazard insurance policy covering at the very least
the appraised value of a house and property.
Inspection Clause: A written stipulation contained in an offer-to-buy
that makes the sales contract contingent upon the findings of a
professional home inspector.
Interest: The pre-determined charge or fee paid to a lender by the
borrower for the use of monies loaned.
Lease-Purchase Agreement: An agreement between owner and tenant
specifying a portion of monthly rent, during a specified period, to be
credited toward purchase of property.
Listing: A contract through with a seller agrees to terms and a fee
with the agent who will sell the property to a buyer.
Market Price: The actual price at which a property is sold.
Market Value: The price that is established by existing economic
conditions, property location and market style and size preferences.
Mortgage: A legal claim received by the lender on a property as security
for the loan made to a buyer to facilitate the purchase.
Mortgage Broker: An independent, third-party, licensed broker who
arranges loan transactions between lenders an borrowers by facilitating
the application and approval process and by securing favorable terms.
Multiple Listing Service (MLS): A system through which participating
brokers agree to share commissions, on a pre-determined percentage
split, on the sale of properties listed by any broker in the system.
Negative Amortization: Most likely to occur with ARM's when monthly
payments are not sufficient to cover interest costs. Additional
interest is added to principal balance and the borrower may end up
owing more that at the initiation of the loan.
Offer: A legally binding, written contract that defines how much a
buyer will pay for a property, depending on satisfactory agreement
with a list of contingencies.
Open House: A period of time when the seller's house is open to
prospective buyers to view the house in a low-pressure environment
usually without their own sales agent.
Origination Fee: Similar to a point, this fee is a supplemental fee
paid by buyers to lenders.
Over Improvement: Additions or improvements in which the cost is
greater than that value added.
PITI: Common real estate acronym meaning Principal, Interest, Taxes,
and Insurance.
Point: A single percent of the loan principal, other charged by the lender
in addition to various fees and interest.
Prepayment: Borrower pays off an entire mortgage before the scheduled date.
Prepayment Penalty: A fee included in the mortgage agreement requiring
borrower to pay in the event the loan is paid before the due date.
Pre-qualification: An informal estimate of the "financing potential" of
a prospective borrower.
Principal: The amount of money borrowed against which interest and
possibly fees will be charged. (A second meaning: one of the parties
to a contract.)
Prorate: Proportionate division of expense based on days or time
occupied or used by the seller and/or buyer.
Purchase Agreement: See definition of Contract.
Qualify: Ability of a borrower to satisfy a lender's mortgage approval
requirements.
Rate Cap: See definition of Cap.
Referral: The recommendation by one agent of a potential buyer and/or
seller to another agent either locally or long-distance.
Refinancing: The process of applying for a new mortgage to gain better
terms or use of equity.
Relocation Specialists: A firm or person specializing in advising
buyers or seller on relocating to different and/or new communities.
RESPA Statement: The Real Estate Settlement Procedures Act requires
a precise listing of all closing costs for both sellers and buyers.
Return on Investment (ROI): The profit gained as the result of money
spent on an improvement or addition to a home or property.
Settlement: This term relates to all legal and financial transactions
required to finalize the contract between buyer and seller, at the
conclusion of which closing takes place.
Settlement Disclosure Statement: A statement or list providing a
complete breakdown of costs involved in finalizing a real estate
transaction, prepared by the lender's agent prior to and reviewed
at closing by buyer and seller.
Title: A legal document that defines the property, right of
ownership and possession.
Title Insurance: An insurance policy that protects the buyer against
errors, omissions or any defects in the title.
Title Search: A highly detailed search of the document history
of a property title for the purpose of identifying any/all legal
encumbrances to the property, prior to title transfer to a new owner.
VA Mortgage: The Department of Veterans Affairs has made guaranteed
mortgages available through banks and other lending institutions, to
active military personnel, veterans, or spouses of veterans who died
of service-related injuries.
Walk-Through Inspection: The final inspection by the buyer, usually
in the company of the buyer's real estate sales agent, to ensure that
all conditions noted in the offer-to-purchase, and all seller-related
contingencies have been met. This inspection is most often completed
immediately prior to the official act of closing, after the seller
has vacated the premises.
Zoning: Virtually all local communities have established specific
restrictions for land use, new construction, remodeling and/or
improvements made to existing structures. Records of all recent
construction and/or remodeling activity are available to you through
a local regulatory department such as The Building Inspector's
department or office, or The Planning and Zoning Board (P&Z).
LEAVE A REQUEST FOR FREE PRE-QUALIFICATION INFORMATION,
EMAIL US YOUR REQUIREMENTS
EMAILCLICK TO SEND MAIL
OR CLICK BELOW!
EMAIL US YOUR REQUIREMENTS
EMAILCLICK TO SEND MAIL
WE CAN SEND YOU A FAX OF ANY PROPERTY
BACK TO MAIN MENU NMHOMES
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PLEASE TAKE NOTE:
Click Here for COPYRIGHT AND DISCLAIMER NOTICE
copyright , 2000 Trish and Chuck Dawson Corrales NM
TRISH DAWSON, JD, REALTOR AND
CHUCK DAWSON, MA, ASSOCIATE BROKER
both with Coldwell Banker Legacy 898 2700
DIRECT 505-792 7632 HOME 505-898-9380
971-8584 PAGE 898-9372 FAX
MORTGAGE
INFORMATION PRE-QUAL ON LINECLICK TO SEE ALBQ. AREA INFORMATION PAGE (new school scores)
HOMES in Albuquerque. RIO
RANCHO NEW MEXICO HOMES west Albuquerque.
CORRALES NEW MEXICO HOMES
north river Albuquerque
PLACITAS NEW MEXICO HOMES
north of AlBUQUERQUE
LOS
LUNAS NEW MEXICO HOMES south Albuquerque
TRISH & CHUCK'S EXPLANATION OF MORTGAGE & HOME BUYER'S TERMS
EVERYTHING YOU NEED TO KNOW ABOUT MONEY IN NM HERE!
Add-on Rate: A type of loan repayment plan arranged to divide the
principal into equal installments. Interest is added-on to the principal,
resulting in high initial monthly payments that, over time, are reduced as
the principal balance is reduced.
Adjustable Rate Mortgage (ARM): A mortgage in which interest and payment
rates vary periodically, based on a specific index, such as 30 year Treasury
bills or the Cost-of-Funds index.
Adjustments: Money credited to either/both buyer and seller at closing,
including real estate taxes, price adjustments based on disclosures in the
inspection, etc.
Agent: A licensed person who represents the seller (and/or buyer) and who
provides market assessment, sales or buying strategy, recommends various
services and sources important to the seller or buyer.
Amortization: A method by which monthly mortgage payments are equalized
over the life of the loan despite the fact that the proportion of principal
to interest changes.
Appraisal: Professional and unbiased written opinion of property's
value based on recent, comparable sales, quality of construction and
current condition, and style of architecture.
Asking Price: The price at which the property has been placed on the market
for sale.
Assessor: A municipal or county official who determines the value of
properties for the purpose of taxation.
Assumption of Mortgage: The buyer assumes liability for an existing
mortgage held by the seller, subject to approval by the lender.
Balloon Mortgage: A short-term mortgage, generally at a fixed rate of
interest, to be paid back in pre-determined, equal monthly payments,
with a large, final payment for the balance of the loan paid at the end
of the term.
Binder: Generally a small amount of money from the buyer, accompanying
a brief written offer to buy. (See Earnest Money).
Broker: A person licensed to represent home buyers or sellers for a
contracted fee. Most real estate offices are managed by a broker who
employs licensed sales agents to sell the properties.
Cap: A limit on the total amount an interest rate can be increased.
(see ARM).
Closing: The final settlement at which time the title is transferred
from seller to buyer, accounts are settled, new mortgages signed, and
all fees and expenses dispersed or satisfied.
Closing Costs: All fees, taxes, charges, commissions and other costs
paid by buyer and/or seller at the closing.
Commission: A previously agreed upon percentage of the home's sale price
paid to the listing and selling agent(s).
Comparable: Closely similar properties in type, size and price that have
changed hands within recent months, used for comparison in the appraisal
report.
Condominium (Condo): Real estate ownership in which a property owner has
title to a specific unit, but shared interest in the common areas.
Conventional Mortgage: Most popular home financing form not insured by FHA
or guaranteed by VA. Available from many lenders at varying rates, terms
and conditions.
Conversion Clause: Clause in an ARM permitting conversion from an
adjustable to a fixed-rate loan.
Cooperative (Co-op): Real estate ownership in which all property
owners (shareholders) own the entire property and each shareholder
has proprietary rights to specific units.
Counter Offer: An offer made by a buyer or seller to the other party,
responding to the asking price or a subsequent adjustment to that price
to complete a purchase or sale.
Curb Appeal: A term used by Realtors including all that a buyer sees
from the street that may induce the buyer to look more closely at the
property.
Deed: A legal "instrument" that conveys the title to a property from
seller to buyer.
Down Payment: The buyer's payment to the seller at the time the sales
contract has been mutually agreed to, or at closing, for the percentage
of the total purchase price required by the buyer's mortgage loan.
Earnest Money: Money paid by the buyer at the time an official offer to
purchase is submitted to the seller, intended to demonstrate the good
faith of the buyer to complete the purchase. Earnest money is applied
against the purchase price, however, it may be forfeited if the buyer
fails to complete the purchase under the terms of the sales contract.
Equity: The difference between the sale price of a property and the
mortgage on the property.
Escrow Account: A third party account used to retain funds including the
property owner's real estate taxes, buyer's earnest money or hazard
insurance premiums.
Fair Market Value: The highest price an informed buyer will pay, assuming
there is no unusual pressure to complete the purchase.
Fannie Mae: Federal National Mortgage Association (FNMA), is a privately
owned corporation created by Congress to buy mortgage notes from local
lenders and provide guidelines for most lenders to use to qualify borrowers.
FHA Insured Mortgage: The Federal Housing Administration makes available
through banks and other lenders, insured mortgages with low down payment
requirements.
Fixed-Rate Mortgage: A mortgage that has a set interest rate and is
basically unaffected by interest rate changes.
Graduated Payment Mortgage: This mortgage offers low initial monthly
payments with increase at a pre-determined rate, hten cap at a final
level for the duration of the mortgage.
Hazard Insurance: Often confused with "Hone Owner's" insurance, it's
designed to compensate for specific hazards including fire and wind.
An "all-risk home owner's policy" provides more complete coverage.
Home Inspection: A formal survey of a home's structure, mechanical
systems and overall condition, generally performed by a licensed
professional inspector.
Home Warranty: A policy available to the buyer or seller as assurance
against unanticipated home repair costs.
Homeowner's Policy: A hazard insurance policy covering at the very least
the appraised value of a house and property.
Inspection Clause: A written stipulation contained in an offer-to-buy
that makes the sales contract contingent upon the findings of a
professional home inspector.
Interest: The pre-determined charge or fee paid to a lender by the
borrower for the use of monies loaned.
Lease-Purchase Agreement: An agreement between owner and tenant
specifying a portion of monthly rent, during a specified period, to be
credited toward purchase of property.
Listing: A contract through with a seller agrees to terms and a fee
with the agent who will sell the property to a buyer.
Market Price: The actual price at which a property is sold.
Market Value: The price that is established by existing economic
conditions, property location and market style and size preferences.
Mortgage: A legal claim received by the lender on a property as security
for the loan made to a buyer to facilitate the purchase.
Mortgage Broker: An independent, third-party, licensed broker who
arranges loan transactions between lenders an borrowers by facilitating
the application and approval process and by securing favorable terms.
Multiple Listing Service (MLS): A system through which participating
brokers agree to share commissions, on a pre-determined percentage
split, on the sale of properties listed by any broker in the system.
Negative Amortization: Most likely to occur with ARM's when monthly
payments are not sufficient to cover interest costs. Additional
interest is added to principal balance and the borrower may end up
owing more that at the initiation of the loan.
Offer: A legally binding, written contract that defines how much a
buyer will pay for a property, depending on satisfactory agreement
with a list of contingencies.
Open House: A period of time when the seller's house is open to
prospective buyers to view the house in a low-pressure environment
usually without their own sales agent.
Origination Fee: Similar to a point, this fee is a supplemental fee
paid by buyers to lenders.
Over Improvement: Additions or improvements in which the cost is
greater than that value added.
PITI: Common real estate acronym meaning Principal, Interest, Taxes,
and Insurance.
Point: A single percent of the loan principal, other charged by the lender
in addition to various fees and interest.
Prepayment: Borrower pays off an entire mortgage before the scheduled date.
Prepayment Penalty: A fee included in the mortgage agreement requiring
borrower to pay in the event the loan is paid before the due date.
Pre-qualification: An informal estimate of the "financing potential" of
a prospective borrower.
Principal: The amount of money borrowed against which interest and
possibly fees will be charged. (A second meaning: one of the parties
to a contract.)
Prorate: Proportionate division of expense based on days or time
occupied or used by the seller and/or buyer.
Purchase Agreement: See definition of Contract.
Qualify: Ability of a borrower to satisfy a lender's mortgage approval
requirements.
Rate Cap: See definition of Cap.
Referral: The recommendation by one agent of a potential buyer and/or
seller to another agent either locally or long-distance.
Refinancing: The process of applying for a new mortgage to gain better
terms or use of equity.
Relocation Specialists: A firm or person specializing in advising
buyers or seller on relocating to different and/or new communities.
RESPA Statement: The Real Estate Settlement Procedures Act requires
a precise listing of all closing costs for both sellers and buyers.
Return on Investment (ROI): The profit gained as the result of money
spent on an improvement or addition to a home or property.
Settlement: This term relates to all legal and financial transactions
required to finalize the contract between buyer and seller, at the
conclusion of which closing takes place.
Settlement Disclosure Statement: A statement or list providing a
complete breakdown of costs involved in finalizing a real estate
transaction, prepared by the lender's agent prior to and reviewed
at closing by buyer and seller.
Title: A legal document that defines the property, right of
ownership and possession.
Title Insurance: An insurance policy that protects the buyer against
errors, omissions or any defects in the title.
Title Search: A highly detailed search of the document history
of a property title for the purpose of identifying any/all legal
encumbrances to the property, prior to title transfer to a new owner.
VA Mortgage: The Department of Veterans Affairs has made guaranteed
mortgages available through banks and other lending institutions, to
active military personnel, veterans, or spouses of veterans who died
of service-related injuries.
Walk-Through Inspection: The final inspection by the buyer, usually
in the company of the buyer's real estate sales agent, to ensure that
all conditions noted in the offer-to-purchase, and all seller-related
contingencies have been met. This inspection is most often completed
immediately prior to the official act of closing, after the seller
has vacated the premises.
Zoning: Virtually all local communities have established specific
restrictions for land use, new construction, remodeling and/or
improvements made to existing structures. Records of all recent
construction and/or remodeling activity are available to you through
a local regulatory department such as The Building Inspector's
department or office, or The Planning and Zoning Board (P&Z).
LEAVE A REQUEST FOR FREE PRE-QUALIFICATION INFORMATION,
EMAIL US YOUR REQUIREMENTS
EMAILCLICK TO SEND MAIL
OR CLICK BELOW! MORTGAGE
INFORMATION PRE-QUAL ON LINE
EMAIL US YOUR REQUIREMENTS
EMAILCLICK TO SEND MAIL
WE CAN SEND YOU A FAX OF ANY PROPERTY
BACK TO MAIN MENU NMHOMES
PLEASE TAKE NOTE:
TRISH DAWSON, JD, REALTOR AND CHUCK DAWSON, MA, ASSOCIATE BROKER both with Coldwell Banker Legacy 898 2700 DIRECT 505-792 7632 HOME 505-898-9380 971-8584 PAGE 898-9372 FAX