The Real Estate Dictionary

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Welcome to The Real Estate Dictionary

Our site gives definitions in detail on all real estate related terms. Use our search box at the top of the page, or click a letter in the alphabar above if you're not sure of the spelling! We hope we have what you're looking for in our real estate dictionary. If not, please contact us at info@therealestatedictionary along with the term you were looking for. We will find the term for you, send you a definition and add it to our real estate dictionary.

Are you Looking for a New Home? Read our 10 Steps to Home Ownsership:

1. Homebuyer Education: The first step is to educate yourself. Research online, or take a free class. Classes for new home buyers can often be found in your community.

2. Choose a Lender: (Pre-Approval Process) After taking a homebuyer class, you are now ready to choose a lender. The lender will analyze your monthly income, credit history, and debt level to determine how much of a mortgage you can qualify for. Use a Mortgage Calculator to determine how much money you can borrow to purchase a home. However, you must contact a lender to determine the exact amount.

3. Selecting and Purchasing a Home: Finding your home is the next step. You may use the Realtor of your choice or purchase a home without a Realtor. Your Realtor will help you negotiate the sales price, assist you in understanding the terms of the purchase contract, and help you through the home inspection process.

4. Loan Application: Once your offer to purchase a home has been accepted, it is time to meet with your lender to fill out a mortgage application. The application process will be faster and easier if you have your financial records in order. Your lender will provide an estimate of how much money you will need for the downpayment and closing costs. Don't be afraid to ask questions! Your lender is providing you a service and is there to answer your questions.

5. Loan Processing: If you did your homework early and resolved any past or present credit problems, this process should be relatively easy. Typically, a well-organized loan file should be processed in about four weeks. Keep in touch with your lender and respond to any requests for information in a timely manner.

6. Loan Approval: Congratulations! Once your loan is approved you are ready to schedule a closing date with your lender and Realtor. If you have a conditional approval, it means that the lender still needs additional information. Do not delay in providing this information to the lender, as it will prevent you from closing on your new home.

7. Loan Closing: The loan closing usually takes place at a title company. You will sign many loan documents. Don't hesitate to ask your loan closer questions about what you are signing. Also, you will need a cashier's or certified check for any money you need to pay to purchase the home. The seller will turn over all keys, garage door openers, and information about the home at this time. Don't forget to have the utilities transferred into your name.

8. Monthly Payment: Responsible homeownership includes making your monthly house payment on time. Mortgage payments are due on the first of every month, and are considered late after the 15th of the month. Late fees, which can be substantial, will be assessed. Late payments on your mortgage negatively affect your credit rating.

9. Payment Problems: If for any reason you are unable to make your mortgage payment, call your loan servicer immediately! He or she will try to help you when possible, but they cannot help you if you wait to call them.

10. Preserve Your Home and Enjoy: Your home is the most valuable asset you own, so it is important to protect that investment. Carefully evaluate any credit offers or solicitations that require you to use your home as collateral. It may not be in your best interest to jeopardize your home with one of these loans. Seasonal and ongoing maintenance of your home is critical to keep and increase its value.

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