Chapter 22-Buying A Home Flashcards
An offer in response to another offer
Counteroffer
Expenses incurred in transferring ownership from seller to buyer in a real estate transaction
Closing costs
The difference between the market value of property and the amount owned on it
Equity
Real estate marketing service in which agents pool their home listings and agree to share commission on the sales
Multiple Listing Services
A formal document that expresses interest in entering into a contract with someone else; how much you will pay for the house
Offer
A loan to purchase real estate
Mortgage
Mortgage is one on which the interest rate does not change during the term of the loan
Fixed-rate
The…..of a home is the highest price that the property will bring on the market
Market value
A formal agreement to the terms of an offer; saying “yes”
Acceptance
A financial claim on property
Lien
A portion of the purchased price of real estate that a buyer deposits as evidence of good faith
Earnest money
Mortgage is one where the interest rate varies according to economic conditions
Adjustable-rate
The legal document that transfer title of real property
Deed
The meeting at which the title to the property is transferred from seller to buyer
Closing
The market value of homes tends to increase over time
Appreciate
A title that is free of any liens is considered to be
Clear
Real estate agents earn….for their work, which is a percentage of the sale
Commission
To ensure title is clear, you should order
Title search
Real estate agents and bank professionals can…..or estimate the market value of your home by comparing it to similar homes recently
Appraise
The interest you pay on your home loan, along with the property taxes, are tax deductible
True
If you look hard enough, you can find a house that meets all your desires
False
The most common source of downpayment money is banks
False
A lien is a right or privilege one person has to use the land of another person
False
A multiple listing service gives persons seeking to buy a home a greater exposure to available homes
True
When a seller accepts an offer exactly as it was stated, this is called a counteroffer
False
The more you spend for a house, the more money your real estate agent earns
True
Most lenders require the borrower to have title insurance
True
If you and the seller have agreed on the transaction, the house will be taken off the market until the deal is completed
True
Home ownership offers
Financial advantages, quality-of-life advantages, and stability
A legal document that establishes ownership
Title
The cost of home ownership is lowered through
Tax deductibles
Real estate agents typically earn commissions that are usually
5-7%
Earnest money protects
Seller
When you apply for a mortgage, what will be checked
References, credit history, and income
Why might you view a house online
To view homes without being there in person
To finance your purchase of a house, you must
Have funds for down payment, meet certain lending requirements, select type of mortgage
What is the primary source of money in buying a house
Savings
Who conducts a title search and issues a report
A title insurance company
