Chapter 35 - Qualifying the Buyer Flashcards Preview

Real Estate Broker > Chapter 35 - Qualifying the Buyer > Flashcards

Flashcards in Chapter 35 - Qualifying the Buyer Deck (13):
1

Appraisal

A professional estimate or opinion of the value of a piece of property or parcel of land, as of a certain date, that's supported by an objective, or pertaining to appraising and related functions, such as appraisal practice or appraisal services

2

Conventional Loan

A loan that is not insured or guaranteed by the federal government

3

Credit History

A record of debt repayment, detailing how a person paid credit accounts in the past as a guide to whether he or she is likely to pay accounts on time and as agreed in the future

4

Debt

Any recurring monetaray obligation that will be cancelled (eg. monthly bills)

5

Debt-to-income Ratio

The relationship of a borrower's total monthly debt obligations, including housing and long-term debts with 10 or more payments remaining, to income, expressed as a percentage ( Total Debt / Income = Ratio)

6

Housing Expense Ratio

The relationship of a borrower's total monthly housing expense to income, expressed as a percentage (Total Housing Expense/income = Ratio)

7

Income

The money one receives from a job, investment, or other use of skills or captial

8

Loan-to-value Ratio

The relationship between the unpaid principal balance of the mortgage and the appraised value (or sales prices if it is lower) of the property

9

Mortgage

An instrument that creates a voluntary lien on real property to secure repayment of a debt.

10

Multiple Listing Service

a listing service whereby local member brokers agree to share listings, and agree to share commissions on properties sold jointly

11

PITI

Principl, interest, taxes and insurance; a typical mortgage payment

12

Pre-Approval

Process by which a lender determines if potential borrowers can be financed through the lender, and for what amount of money

13

Pre-Qualification

The process of determining how much money a propective homebuyer might be eligible to borrow; it is not a guarentee