Terms You May Have Questions About
Mortgage PreApproval- Mortgage PreApproval involves the application and approval for a mortgage prior to selecting a home for purchase. A preapproval is not a binding commitment on either the applicant or lender, but rather an indication that the lender is ready, willing, and able to extend a mortgage to a mortgage applicant once a suitable property has been secured via a real estate contract.
Contingencies - A contingency is a provision in a real estate contract that specifies the contract would cease to exist upon the occurrence of a certain event.
Examples of Contingencies:
- Home Inspection
- Financing
- Appraisal
- Home Owner Associations/Condo Documents
- Home of Sale
Contract Ratification - When a real estate purchase agreement or contract is executed and the terms are accepted by both parties, it is a complete and binding document. Should it become necessary to change any aspect of the previously agreed-to terms, an amendment is prepared. It is a document that makes a change to the ratified contract.
Radon - Radon is a colorless, odorless, tasteless radioactive gas that’s formed during the natural breakdown of uranium in soil, rock, and water. It exits the ground and can seep into your home through cracks and holes in the foundation. It can also enter your home in well water.
Home Inspection – This is a limited, non-invasive examination of the condition of a home, often in connection with the sale of that home.
Walk Through Items – hese items are in paragraph 7 of the Regional Sales contract, and states: Seller warrants that the existing appliances, heating, cooling, plumbing, electrical systems and equipment, and smoke and heat detectors (as required) will be in normal working condition as of the contract date.
Definitions provided by About.com