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The A’s Of Real Estate


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(Click A Letter Or Scroll Down To Find A Term Starting With That Letter)

Get to know the language of real estate to get better results when buying or selling a home in the Orlando area

Get To Know The “A’s” Of Real Estate

+/- Click A Term To Read Its Definition – Expands Answer In This Same Window – Click Again To Collapse

+/- “A” Loan or “A” Paper

A credit rating where the FICO score is 660 or above. There have been no late mortgage payments within a 12-month period. This is the best credit rating to have when entering into a new loan.

+/- ARM

Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap. A mortgage loan that does not have a fixed interest rate. During the life of the loan the interest rate will change based on the index rate. Also referred to as adjustable mortgage loans (AMLs) or variable-rate mortgages (VRMs).

+/- Abstract of Title

Also known as – Title Abstract. This documents recordings of ownership of property throughout time. Florida follows a thirty (30) year abstract ruling. A title company guarantees the “Chain Of Title” when you buy title insurance.

+/- Acceleration Clause

The loan documents will provide the lender the right to demand payment on the outstanding balance of a loan by “accelerating” the due date if the borrower defaults on one or more of the note/loan terms.

+/- Acceptance / Delivery

The written approval of the buyer’s offer by the seller and once delivered to the buyer ratifies the contract for purchase.

+/- Additional Principal Payment

Money paid to the lender in addition to the established payment amount used directly against the loan principal to shorten the length of the loan. Always be sure to check for “Pre-payment Penalties” before making additional payments on principal.

+/- Adjustment Date

The actual date that the interest rate is changed for an ARM.

+/- Adjustment Index

The published market index used to calculate the interest rate of an ARM at the time of origination or adjustment. Visit here to see the most common indexes used for ARMs; The ARM Index Comparison Table

+/- Adjustment Interval

The time between the interest rate change and the monthly payment for an ARM. The interval is usually every one, three or five years depending on the index.

+/- Affidavit

A signed, sworn statement made by the buyer or seller regarding the truth of information provided. These are commonly used by title companies when ensuring certain data is consistent with the contract and/or parties involved.

+/- Agency Relationship

There are several Agency Relationships that one can enter in the State Of Florida. These are defined by the Real Estate Licensing Law, aka Chapter 475 of the Florida Statutes. The exact area of Chapter 475 that covers relationships is 475.278. MORE Realty Services LLC always chooses to first represent a client as a Single Agent, and will only work as a Transaction Broker if necessary to comply to Florida State Real Estate Laws. This gives our clients the best care and creates a bond that allows us to act in the best interest of You!

+/- Amenity(s)

A feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, woods, water) or man-made (like a swimming pool or garden).

+/- American Society of Home Inspectors

The American Society of Home Inspectors is a professional association of independent home inspectors. Phone: (800) 743-2744. ASHI.org

+/- Amortization

A payment plan that enables you to reduce your debt gradually through monthly payments. The payments may be principal and interest, or interest-only. The monthly amount is based on the schedule for the entire term or length of the loan.

+/- Annual Mortgagor Statement

A yearly statement to borrowers detailing the remaining principal and amounts paid for taxes and interest.

+/- Annual Percentage Rate (APR)

A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders, by federal law, follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans. APR is a higher rate than the simple interest of the mortgage.

+/- Application

The first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process.

+/- Application Fee

A fee charged by lenders to process a loan application.

+/- Appraisal

A document from a professional that gives an estimate of a property’s fair market value based on the sales of comparable homes in the area and the features of a property; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.

+/- Appraisal Fee

The fee charged by an appraiser to estimate the market value of a property.

+/- Appraised Value

An estimation of the current market value of a property.

+/- Appraiser

A qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.

+/- Appreciation

An increase in property value.

+/- Arbitration

A legal method of resolving a dispute without going to court.

+/- As-is Condition

The purchase or sale of a property in its existing condition without repairs.

+/- Asking Price

A seller’s stated price for a property.

+/- Assessed Value

The value that a public official has placed on any asset (used to determine taxes).

+/- Assessments

The method of placing value on an asset for taxation purposes.

+/- Assessor

A government official who is responsible for determining the value of a property for the purpose of taxation.

+/- Assets

Any item with measurable value.

+/- Assumable Mortgage

When a home is sold, the seller may be able to transfer the mortgage to the new buyer. This means the mortgage is assumable. Lenders generally require a credit review of the new borrower and may charge a fee for the assumption. Some mortgages contain a due-on-sale clause, which means that the mortgage may not be transferable to a new buyer. Instead, the lender may make you pay the entire balance that is due when you sell the home. An assumable mortgage can help you attract buyers if you sell your home.

+/- Assumption Clause

A provision in the terms of a loan that allows the buyer to take legal responsibility for the mortgage from the seller.

+/- Automated Underwriting

Loan processing completed through a computer-based system that evaluates past credit history to determine if a loan should be approved. This system removes the possibility of personal bias against the buyer.

+/- Average Price

Determining the cost of a home by totaling the cost of all houses sold in one area and dividing by the number of homes sold.

Keep in mind that this is by no means a complete list of terms, but it does highlight most of the more common terms used in the industry and is a constant work in progress as time passes.

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If you have any questions whatsoever regarding the sale or purchase of a property in the Central Florida area please feel free to call or write me direct. My business hours are Monday thru Friday 9am – 6pm.

Thank you for choosing MORE Realty Services LLC as an information source for your Central Florida real estate needs.

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