Construction Loan – A short-term type of loan used to finance construction. These loans are typically repaid using the proceeds from the sale of homes that were constructed. In these loans, the lender makes the payments to the contractor and the developer starts making interest payments to the lender.
- Example: When developers build large developments they typically finance them with construction loans that are quickly repaid using sale proceeds from the home sales.
Executor – The person who is responsible for administering the terms of a deceased’s will. The feminine of the word is Executrix.
- Example: After the death of a person, the executor of the deceased’s will facilitates the distribution of the estate.
Buyers are magnetized to homes with attractive exteriors. That gorgeous remodeled kitchen, bath, or master bedroom may never be seen if buyers can’t first make it past your front door. Indeed, the Real Estate Agent Community Trends survey has found that “82% of surveyed agents have had potential buyers decline to look at the interior of a house due to its exterior appearance.”
Flood Insurance – Insurance purchased to compensate the damaged property owner in the event of a flood.
- Example: If your home is downgrade in your neighborhood and you live in an area that is subject to sudden down pours, you should get flood insurance to protect your home and personal property.
Survey – A map or drawing that shows a property in detail; it has the property lines, improvements, easements and encroachments.
- Example: When property line disputes occur between neighbors, the best solution to the problem is to order a survey to determine exactly where the property line is.
Fixed-Rate Mortgage – A loan where the interest rate is fixed for the duration of the loan.
- Example: When interest rates are low buyers take advantage of the low rates by locking into long term fixed-rate mortgages.
Credit Repository – An organization that collects, records, analyzes and reports on the credit histories of people and entities. Also known as credit bureaus.
- Example: Everyone should know their own credit report, so check with the major credit repositories to check up on your report.
Treasury Index – An index based off of US Government Treasuries that is used to set interest rates on adjustable and fixed rate mortgages.
- Example: The treasury index is an index of interest rates that are used to set mortgage interest rates.
Subdivision – A housing development or neighborhood created by breaking a large tract of land into smaller individual lots.
- Example: A lot of neighborhoods are subdivisions where a builder bought a huge tract of land and broke it up into many smaller lots to build homes on.
Fannie Mae’s Community Home Buyer’s Program – A program under which mortgage insurers and Fannie Mae offer more flexible underwriting rules to make it possible for more low to moderate income families to purchase homes.
- Example: The Fannie Mae Community Home Buyer’s Program was designed to help people purchase homes, they want to help so much, they even require the borrowers to take classes on homeownership.