The home sale process is complicated enough to begin with. Real estate lingo can make it even more complicated, especially if it is your first time buying a property. In this article are details on frequently used real estate lingo. This will help you better understand the home buying and selling process.

Frequently Used Real Estate Lingo

Comparative Market Analysis

A Comparative market analysis is a document that evaluates your real estate to homes with similar features that sold recently in the same neighborhood. It traditionally provides a price range for which your property may sell in the specific market.

MLS

MLS stands for Multiple Listing Service. This is a database where members of the MLS submit listings. Different regions normally have different MLS databases, and some states could have more than one. Non-member of MLS are not given login permission to the database but can receive listings from real estate professionals.

Property Assessments

This is the value placed on properties by a local tax assessor and for the purpose of estimating property taxes. Assessed valuation has no relevance to the market value of a property.

Final Walk-Thru

Walk-thrus usually are scheduled just before settlement. It allows a buyer to preview a home and to check that the condition has not altered from the last time they visited it.

Purchase and Sale Terms

Contingency

A contingency is something necessary for an individual to proceed with a home sale or purchase. For example, the ability to purchase might be based on the sale of their old real estate. Other typical contingencies are for satisfactory inspection and ability to obtain financing commitment.

Good Faith Money

Good faith money refers to deposits submitted by a buyer with a agreement to purchase real estate. It shows that a buyer is acting in good faith. Deposits are almost always held by a listing agency for a seller and given back to a buyer at closing.

Real Estate Closing

A closing is when documentation is signed, funds are exchanged, and real estate legally changes hands from the seller to the buyer. Purchase agreements should have a closing date and place.

Additional Information on Real Estate Lingo

This article lists details on frequently used real estate lingo and includes only some common terms. For more detailed real estate definitions and advice, contact Peter DaMore at 781-229-7900 or pdamore@ptdlaw.com.

Condominiums are much different than single family properties. It is useful for buyers to understand those differences before purchasing a condo unit. This blog provides MA condo definition for buyers.

Condominium Defined

The Definition

Condominium is a type of land ownership. Condominiums contain 2 or more units, with the interiors belonging to specific owners. Unit owners have joint ownership in shared spaces. Certain areas, such as patios, may be considered common space but granted to a specific owner for exclusive right to use. A master deed details the ownership structure and other relevant information on the entire complex. A unit deed offers information on a specific unit. Buyers should see both before buying a unit.

Condo Styles

The style of a property does not identify it as a condominium. Condos come in vary in style. Some are converted multi-family buildings and others are extensive complexes encompassing multiple buildings. The following are a few common condo styles.

• Garden Consists of only one-level of finished space.
• Townhouse Contains two or more levels of living space.
• Detached Unattached units.
• Duplex Two units attached to one another, sometimes referred to as a condex.
• Low Rise A building with a few floors and consisting of mostly single-floor units.
• High Rise A building with many floors and typically serviced by an elevator.

Important Information on Condos

Management of Condos

A document called the By-Laws outlines the condo management procedures. It is normally filed into public record with the master deed. It specifies the structure and tasks of the Trustees. Their roles often include collecting condo fees, enforcing rules and regulations, and managing the budget. Trustees might involve a professional management company to assist with these tasks. Yearly meetings are held to offer unit owners input and to review finances and other matters.

Monthly Fees

Most condos have a monthly fee to cover shared expenses. A certain portion is deposited into a reserve and saved for extensive maintenance issues. Fees may go up or down based on the condominium budget and planned expenses. If the funds do not cover expenses, unit owners might incur a special assessment.

Accept the Rules

All condominium complexes have established rules and regulations. They can explain guidelines for common areas and sometimes also within the units. They are intended to maintain order and preserve shared amenities for the benefit of all the owners. There is no universal set of rules – they vary for every complex.

MA Condo Definition For Buyers

Local real estate professionals can help buyers compare different condominium complexes. Buyers must also consider having a real estate attorney review and explain condo paperwork. By understanding the details on condos, buyers can make more educated investments. This article on MA condo definition for buyers was prepared by Peter DaMore at Law Offices of Peter T. DaMore Jr. and is intended only as an overview. Contact Peter at 781-229-7900 or pdamore@ptdlaw.com for facts on a specific complex.

If you are purchasing a condo, you may not think that you should buy condo insurance. Condo complexes usually have a master insurance policy, but the coverage is really limited. It is important for you to evaluate what master insurance policies cover and the additional protection of individual MA condo insurance policies will provide you as a home owner. This blog covers information on condo insurance in MA.

What Is Master Insurance

Master insurance policies for condos normally cover the structure and common elements (i.e. halls, elevators, and the siding). It may not insure unit-specific items such as HVAC, unit appliances, kitchen cabinets, etc. More importantly, it will not insure personal belongings such as appliances, jewelry, and clothing. Policies vary, so be sure to ask for a copy of the master insurance policy for your condo complex and determine its scope.

What Individual MA Condo Insurance Policies Cover

MA personal condo insurance does not cover the infrastructure of the building, since that is addressed by the master policy, but is in every other way like normal homeowners insurance. It normally insures against burglary, fire, some types of weather damage, vandalism, debris, and impact involving automobiles or aircraft. It can also include personal liability coverage which applies if visitors get injured in your home or if you damage someone else’s home. A low amount of value is normally offered for personal assets. Enhanced coverage may be added for jewelry, equipment, collectible items, and specific renovations (such as a luxury kitchens or appliances).

Cost of Condo Insurance and Where to Begin

A majority of the time, MA condo insurance policies are actually lower cost than typical homeowners insurance. Be sure to contact your insurance company for advice on how much coverage you need. Your agent may want to know the features and amenities of your unit plus dollar value of coverage necessary for personal assets. He/she may ask for the master insurance policy to confirm what is included. Completing this process will confirm that you have enough coverage based on your needs.

If you are in the market to purchase a high end home, reach out to local experts who are familiar with their industry and also understand your point of view and requirements. Hiring the right professionals will help you remain better informed and make a good buying decision. Below is information about the benefits of hiring MA luxury property real estate professionals.

Definition of a Luxury Home

Defining a high end home is a matter of perspective, but in general they are specially constructed homes that are enhanced, have top-line features, are priced at the higher end of the spectrum for the area, and are located in private or semi-private communities. High-grade materials or tailor-made installations are also characteristics of luxury properties. Other features are a helipad, home theater, a fitness studio, a spa or pool, or special gardens, heated garages, just to name a few. The quality and workmanship of every feature of a luxury home must meet the highest standards.

Benefits Of Hiring MA Luxury Property Real Estate Professionals

Real Estate Professionals whose speciality is in the luxury home market are familiar with the specific market and the unique needs of luxury home buyers and sellers. Privacy, community lifestyle, schools, and conveniences vary among communities. Luxury property owners will view each of these characteristics very differently from typical homeowners. Real estate professionals may have specialized training, certifications, and knowledge in these areas and on listing high-end listings. They may also have access to private listings and communities. Hiring the right real estate agent is extremely important for any home sale or purchase, but even more so for luxury properties.

Finding the Right Realtor

Luxury home Realtors have unique knowledge of the lifestyle, community, and requirements of high-end buyers and sellers. That perspective and expertise is important and can make a difference not only in the marketing of a property, but also in client satisfaction.

Everyone has a right to dispute mistakes on their credit report. However, home buyers should be conscious of the effect that this may have on obtaining financing. This article offers important information on disputed trade accounts and the effect on MA mortgages.

Preparing for a Home Purchase

If you are thinking of buying real estate in the future, be sure to review your credit report far in advance. This affords you the opportunity to identify and address mistakes prior to applying for a loan. Ideally, you would want the disputes cleared before beginning the home purchase process. If you do have any pending items, notify your mortgage consultant early in the process. Do not assume that it was noticed on your report during the pre-approval process.

What Are Disputed Trade Accounts

If you identify an error on your credit report, you have the ability to dispute it by sending information to the three credit bureaus. A note is made in your credit file and the accounts are considered disputed trade accounts. Credit bureaus may opt to disregard the specific items when calculating your score, so they might not impact your score while in process. Usually, the notation is removed when the issue is resolved and, if necessary, the needed corrections are made. This process can take many months. Even though you may not notice a reduction of your score, the information on the dispute can cause other problems.

Disputed Trade Accounts And The Effect On MA Mortgages

Many mortgage companies utilize electronic underwriting systems. Your credit score and other information from your credit report are analyzed by the program. Disputed trade accounts may lead a loan application to be denied or diverted to manual underwriting. Gather all paperwork and information related to the disputed trade accounts. If it was a debt that you settled but was not correctly reflected in the credit reports, have statements displaying the amount owed and verification of amounts paid. Also prepare a letter explaining the scenario. This may improve the likelihood of getting your financing approved. Keep in mind that many mortgage companies may not approve a loan if there is a dispute on file, regardless of the circumstances. This is in place in an attempt to reduce fraud but, unfortunately, can often hurt buyers with reasonable claims. To be safe, it may be best to fully address credit disputes before submitting an application.

Scheduling and seeing properties can be a bit cumbersome. There are a few things to consider when selecting homes to view, prior to showings, and during showings. The MA buyer real estate showing guidance below can help make it a little bit easier.

Deciding Real Estate to See

Price Range Is Important

It will be heart breaking to fall in love with homes that you cannot afford. This can also waste significant time and energy. Request a home loan pre-approval and know what you can purchase prior to seeing homes for sale. This is probably the most critical of the MA buyer real estate showing guidance.

Home Features

Compile a wish list with amenities that you must have and those that are optional. Keep in mind that no property is perfect and that you may need to identify amenities that you can live without. Ask your real estate broker for advice on what different features may cost or are commonly available in real estate within your price range. Considering this information ahead of time will help make the process easier.

Things You Can Do Ahead of Time

Research

Review virtual tours of homes online ahead of time and eliminate listings that obviously do not match your criteria. If possible, drive by properties ahead of time. Ask your real estate representative about specific neighborhoods and market trends. In markets with an abundance of listings, narrowing down options will make the time spent visiting listings in-person less time consuming.

Grouping Viewings

Make good use of your time by planning visits to multiple properties during the same trip. Your real estate professional will decide the optimal order for viewing them and actually contacting listing agents and/or sellers to verify appointments. Try not to be too ambitious as you can get information overload.

Advice During Showings

MA buyer real estate showing guidance would not be complete without information for during and after showings. If you know right away that you will not consider a property, do not waste any additional time seeing it. This allows you to spend additional time in properties that interest you. Write down your thoughts during or shortly after a showing. List things that you liked and did not like. These personal notes may help you remember each listing later. It is not necessary to see and remember every aspect of a listing in one visit. Think of first viewings as an opportunity to narrow down your options and return for second showings for properties that you are really interested in. You may catch different things upon seeing a property a second time or at a different time of day.

Additional MA Buyer Real Estate Showing Guidance

Real estate brokers know the area and understand how to best arrange showings. Select a professional that understands your requirements and trust that agent to guide you through the process. Your agent can also offer additional MA buyer real estate showing guidance. This guide was compiled by Peter DaMore at Law Offices of Peter T. DaMore Jr. and is intended only as an overview.

Condominium purchases can be different from single family home purchases. There are more factors to evaluate. This blog provides condominium purchasing tips for MA home buyers.

Definition of a Condo

Condos are buildings with two or more units with shared common areas such as land and hallways. Shared components belong to the association and every owner has a percentage interest. The exact share is normally based on total number of units. Condo owners must maintain the interior of their own unit but share the expense of common areas such as land. Due to the common elements and expenditures, it is important for MA buyers to review certain paperwork ahead of time.

Information You Need to Know

Using Different Loan Programs

Financing programs will restrict loans to units in qualified complexes or based on specific criteria. For example, FHA requires specific owner occupancy percentages, satisfactory reserves, and a variety of other items. Condo complexes that cannot obtain FHA approval will be more difficult to sell. Buyers intending to use FHA should find out whether a complex is approved prior to spending too much effort viewing units there.

Owner Occupied Units

Every complex has some rental units. High owner occupancy percentages are better from a mortgage standpoint. High rental rates also tend to be less desirable.

Recurring Fees and Reserves

Most condominium complexes have monthly fees. The fees are for common expenses. A certain portion is also placed into a reserve to prepare for upcoming maintenance. It is important for potential buyers to ask how much the condo fee is, what is covered, the history of changes, and expected changes in the future. Buyers should also ask about the current reserve. If a complex does not have enough to cover a significant repair, all unit owners will be billed for the shortage. This is called an assessment and can be a lot for owners to cover.

Know the Restrictions

The biggest difference between single family and condo homes relates to restrictions. It is necessary to obtain the rules and regulations in advance and determine whether they are acceptable. Rules can apply to both common spaces and interior spaces.

Condominium Purchasing Tips For MA Home Buyers

There are risks to buying any type of listing, but condo ownership has some additional components that buyers must understand. Carefully review all documentation and get help from a real estate attorney for help. Also think about the future market value of units based on the finances of the complex and mortgage qualification. Contact a real estate broker to furnish historical information on sales in the complex. All of this helps buyers develop an informed decision about a condo purchase. This article on condominium purchasing tips for MA home buyers was shared by Peter DaMore at Law Offices of Peter T. DaMore Jr.. Contact Peter at 781-229-7900 or pdamore@ptdlaw.com for facts on particular complexes in MA or for help with other real estate matters.

Credit ratings are generated by three credit agencies (Experian, Equifax, and Transunion). They each use a differing methods to calculate a numerical credit score that reflects your credit history. The higher the score, the less risky you are as a borrower. Specific activities can have a adverse influence on your rating and could possibly cause you to get denied for a home loan. Below are advice for potential MA home buyers on credit activities to avoid before buying a home.

Credit Activities To Avoid Before Buying A Home

Delinquent Behavior

Missing payments demonstrate poor credit habits and consequently reduce your score. How many payments you have missed (30, 60, or 90+ days) and how many times you are late also play a role. Delinquencies remain on your credit report for a very long time.

Collection Accounts

If you are really behind on payments and a lender has given up on their own attempts to obtain anything from you, they may move your debt to a collection company. This appears on your credit report. The information will stay on your credit file even after you pay off the debt.

Lender Charge-off

If a creditor is unable to collect the complete balance that you owe to them, they may “charge-off” the uncollected amount. This may apply if you entirely neglect to pay or if you settle for a lower amount. Charge-offs appear on your credit file for 7 years. Future creditors will view this item and debate how likely you are to continue with that behavior.

Matters of Public Record

Bankruptcy, tax liens, judgments, foreclosures, and other similar matters are part public record. Regardless of whether you settle those accounts, the initial reporting stays on your credit score. Particular things appear for seven to ten years whereas others (such as liens) remain forever. Obviously, it is critical not to let issues get this far.

Advice For Potential MA Home Buyers

All of the credit activities to avoid before buying a home noted above make you a risky borrower and may cause higher mortgage rates or completely stop you from getting loans. Demonstrate responsible behavior and it will save time, money, and disappointment when it is time to buy real estate. These are the best advice for potential MA home buyers. this includes only a few common credit mistakes. Speak with a credit professional for information on your particular situation.

When you are qualified for a home loan, it is based on a specific monthly payment. The interest rate is estimated (as well as other figures such as property taxes and homeowners insurance). Interest rate fluctuations affect MA home loan pre-approvals because it impacts the principal and interest portion of the total payment. It is useful for buyers to understand this because an increase or decrease in rates can affect purchase price limits.

Interest Rate Fluctuations

Interest rates may change on a daily basis. At certain times, they can even do so many times on the same day. As a buyer, you will not know what your particular interest rate is until you identify a home, have an estimated settlement date, and lock in the interest rate. Thus, there is some uncertainty, particularly for price sensitive borrowers. It is useful to find out what interest rate was originally used to determine the pre-approval and to keep your pre-approval up-to-date. During times when interest rates are constantly or dramatically moving, speak to your loan officer before preparing an offer on a property to verify that you still qualify to purchase it.

Interest Rate Fluctuations Affect MA Home Loan Pre-approvals

Mortgage payments normally include principal, interest, property taxes, hazard insurance, and mortgage insurance (if the down payment is less than 20%). For the purposes of this example, we will only cover the principal and interest component. Assume that a buyer qualifies for a $300,000 property based on a thirty year home loan, 3.5% down payment, and 5% interest rate. The principal and interest portion of the payment is roughly $1554. If the interest rate increases by half a percent, that same home buyer will then qualify for only $283,638. That is a reduction of over $16,000 in the purchase price, which will be a smaller home. On the other hand, if interest rates reduce by 0.5%, the price limit improves to $317,843. The figures below illustrate the impact of other increments for this same buyer using a monthly principal and interest payment of $1554:

Knowing Your True Price Limit

You should ask your lender regarding the maximum payment amount for which you qualify. Using this information, you can better determine the feasibility of properties before making an offer. Keep in mind that there are several calculations for the total figure: interest rate, property taxes, property insurance, and mortgage insurance. If you plan to purchase a home close to the qualification limit, then it is very important to watch interest rates. Your loan consultant and real estate broker can assist you with these calculations and provide other information on how interest rate fluctuations affect MA home loan pre-approvals.

There are a variety of things that you can do to prepare for the mortgage process. A particularly important one is to review your credit reports in advance as those scores affects your mortgage options and interest rate. Below are tips on improving credit before buying real estate in Burlington MA.

Tips On Improving Credit Before Buying Real Estate In Burlington MA

Correcting Discrepancies

Your credit rating affects if you qualify for specific financing options, so obtain your credit rating in advance. There are 3 different credit bureaus (Equifax, Experian, and Transunion). Your rating may be different with each. If there are any errors, it is important to initiate the process of having them corrected immediately as this may take a few months to accomplish.

Increasing Your Score

If your credit score is low, work on elevating it. There are a few ways to accomplish this. If you do not routinely make charges to your credit cards, then they are not submitting information to the credit agencies and are therefore not improving your score. Make routine purchases with your cards and pay the bills consistently. This will help elevate your credit score. If your ongoing balances are high relative to your allowable limits, work on paying off each card. Keep in mind that it is better to have minimum balances across several cards than to have one card close to its limit.

New and Old Accounts

Avoid creating new debt or eliminating accounts. Do not make any big purchases either. These tend to reduce your credit score.

By assessing your credit score, you will have have the time to correct mistakes. Use the basic practices offered in the above Tips On Improving Credit Before Buying Real Estate In Burlington MA Keep in mind that the above are only a few guidelines. For personalized financial assistance, contact a financial advisor.