Real Estate Terms From Pre Approval Letter To Townhouse

Real Estate Terms – From Pre-Approval Letter to​ Townhouse
When buying or​ selling a​ property, it​ always helps to​ have a​ basic understanding of​ real estate terms .​
In this on going series of​ articles, we take a​ look at​ definitions starting with Pre-Approval Letter.
1) Pre-Approval Lender Letter – a​ writing from a​ lender stating that a​ potential buyer has approval to​ borrow a​ stated amount of​ money from his firm based on having documented all the​ personal information needed .​
Final approval is​ subject only to​ the​ lender’s receiving a​ copy of​ a​ contract to​ purchase real estate, a​ satisfactory appraisal of​ that real estate, and​ its underwriting department’s review of​ all pertinent information .​
In other words, the​ buyer qualifies so long as​ the​ property does and​ no changes occur .​
2) Pre-Qualification Lender Letter – a​ writing from a​ lender stating that a​ potential buyer is​ able to​ get a​ loan in​ a​ named amount .​
It typically states the​ price of​ real property to​ be purchased, and​ what information the​ lender had when forming his opinion .​
When a​ lender has pulled a​ borrower’s credit file, his opinion is​ worth more than if​ he just based it​ on what the​ borrower told him.
3) Real Estate, or​ Real Property – ground, any plants growing in​ it, any minerals under it, and​ any buildings or​ other improvements built on it.
4) Septic System – a​ self contained means of​ disposing of​ sewerage which tends to​ intimidate city dwellers .​
the​ simple version is​ a​ holding tank in​ which enzyme and​ bacterial action decomposes the​ waste material and​ buried lines in​ a​ drainage field which uses soil to​ strain out what remains .​
This works very well in​ soil which percolates well (water drains through it​ quickly) .​
More elaborate septic systems are often needed in​ areas with heavy, clay soil and​ in​ areas with a​ high water table .​
Some properties are totally unsuited for​ septic systems and​ cannot be built on until public sewer is​ available .​
5) Title Insurance – insurance which will compensate the​ insured for​ the​ value of​ his ownership or​ collateral position in​ real property if​ a​ person not thought to​ be a​ current owner materializes as​ an​ owner .​
(I’ve seen this come into play when property was owned by many heirs a​ generation or​ two ago.)
6) Townhouse - a​ single family attached dwelling unit with common walls .​
Well, as​ promised, it’s not a​ be-all, end-all, but we have covered lots of​ the​ important definitions and​ concepts needed to​ successfully handle your for​ sale by owner transaction .​
If I’ve missed something, don’t hesitate to​ visit our site to​ read more.

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