Terms Every Home Buyer Should Know

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Across
  1. 3. Pre-________: A basic assessment of income, assets and credit score to determine what, if any, loan programs a borrower might qualify for. A real estate agent will request a pre-approval or pre-qualification letter before showing a buyer a home.
  2. 4. ______ loan: A combination of loans bundled to avoid private mortgage insurance. One loan covers 80% of the home’s value, another loan covers 10% to 15% of the home’s value, and the buyer contributes the remainder.
  3. 8. A buyer’s final inspection of a home before closing.
  4. 10. A property repossessed by a bank when the owner fails to make mortgage payments.
  5. 12. _______ loan: A home loan not guaranteed by a government agency, such as the FHA or the VA.
  6. 13. _______ market: Market conditions that exist when buyers outnumber homes for sale. Bidding wars are common.
  7. 15. ______-______ policy: A homeowners insurance policy that pays the replacement cost of a home, minus depreciation, should damage occur.
  8. 16. Your Home Sold _________ or Selector Realty will buy it
Down
  1. 1. A process a lender follows to assess a home loan applicant’s income, assets and credit, and the risk involved in offering the applicant a mortgage.
  2. 2. Under _______: A period of time (30 days or longer) after a buyer has made an offer on a home and a seller has accepted. During this time, the home is inspected and appraised, and the title is searched for liens, etc.
  3. 5. _______ market analysis (CMA): An in-depth analysis, prepared by a real estate agent, that determines the estimated value of a home based on recently sold homes of similar condition, size, features and age that are located in the same area.
  4. 6. _________ money: A security deposit made by the buyer to assure the seller of his or her intent to purchase.
  5. 7. _____-_____ ratio: One of two debt-to-income ratios that a lender analyzes to determine a borrower’s eligibility for a home loan. The ratio compares the borrower’s monthly debt payments to gross income.
  6. 9. ______ ratio: One of two debt-to-income ratios that a lender analyzes to determine a borrower’s eligibility for a home loan. The ratio compares total housing cost (principal, homeowners insurance, taxes and private mortgage insurance) to gross income.
  7. 11. The name of your next real estate agent.
  8. 14. Tax _______: The government’s legal claim against property when the homeowner neglects or fails to pay a tax debt.