When buying a home, you’ll hear a lot of new terms and acronyms bandied about. Here is a list of common acronyms with real estate to help you make sense of it all.
MLS- Multiple Listing Service- This is where Realtors post all of the homes that are for sale in a single spot.
CD- Closing Disclosure-This is a government regulated form with all the fees and costs for closing on a property broken down.
CC&R-Codes, Covenants, and Restrictions- All neighborhoods have them- some are enforced, some aren’t- this is where your HOA will come up with their rules.
DD-Due Diligence-There is a due diligence deadline in every contract, which is a period for the buyer to make sure they have the time to look into the home and make sure they are comfortable with its condition.
FA-Financing and Appraisal deadline- This the deadline by which all financing needs to be finalized and the appraisal needs to be done as well.
FHA-Federal Housing Administrator-They hold most first time home buyer’s mortgages.
MI-Mortgage Insurance-If you haven’t put down 20% on your home, you will likely have mortgage insurance (an extra fee for the risk the lender takes by lending to someone with a small down payment) added into your monthly payments.
PITI-Principle, Interest, Tax, and Insurance payment- This is your complete payment once you’ve closed on the house. Usually, when you look online, you’ll see payments that include just the principle and interest, but not the tax or mortgage insurance or homeowner’s insurance.
Are there any other real estate terms you have trouble understanding? Feel free to comment below and ask!