subject: From Pre-approval Letter To Townhouse Knowing The Real Estate Terms [print this page] When you are buying or selling a property, having a basic understanding of real estate terms is always helpful. What we will look at in this series of articles are definitions starting with "Pre-Approval Letter."
a) Pre-Approval Lender Letter. This is defined as a writing from a lender which states that a potential buyer has approval to borrow a stated amount of money from his firm based on having documented all the personal information needed. Subject only to the lender's receiving a copy of a contract to purchase real estate is the final approval as well as a satisfactory appraisal of that real estate, and its underwriting department's review of all pertinent information. This would also mean that the buyer qualifies so long as the property does and no changes occur.
2. Pre-Qualification Lender Letter A writing from a lender stating that a potential buyer is able to get a loan in a named amount. Here, it is typically stated that the price of real property to be purchased, and what information the lender had when forming his opinion. A lender's opinion is worth more than if he just based it on what the borrower told him when he has pulled a borrower's credit file.
Real Estate, or Real Property ground, any plants growing in it, any minerals under it, and any buildings or other improvements built on it.
Septic System. This is also known as a self contained means of disposing of sewerage which tends to intimidate city dwellers. A holding tank in which enzyme and bacterial action decomposes the waste material and buried lines in a drainage field which uses soil to strain out what remains is the simple version of this. This actually works well when it comes to soil which percolates well (water drains through it quickly). More elaborate septic systems are often needed in areas with heavy, clay soil and in areas with a high water table. Totally unsuited for septic systems and cannot be built on until public sewer is available are some of the properties.
Title Insurance. You need to know the insurance that will compensate the insured for the value of his ownership or collateral position in real property if a person not thought to be a current owner materializes as an owner. (I've seen this come into play when property was owned by many heirs a generation or two ago.)
6. Townhouse. This is considered as a single family attached dwelling unit with common walls.
It's not a be-all, end-all, but we have covered lots of the important definitions and concepts needed to successfully handle your for sale by owner transaction.
by: Eric Steffan
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