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Real Estate Glossary and Terms

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Realty Terms beginning with P

An acronym for principal and interest which are components of a monthly mortgage payment.

An acronym for principal, interest, and taxes which are components of a monthly mortgage payment.

An acronym for principal, interest, taxes, and insurance which are components of a monthly mortgage payment.

A process used by mortgage lenders to determine the loan amount they would give to a potential buyer based on an extensive review of the buyer's credit history. Lenders issue pre-approval letters to strengthen a buyer's position when bidding on a home, because it instills confidence in a seller that the buyer is able to obtain the money needed to purchase the property.

An informal process where a lender gives an estimate of how much a person can borrow to purchase a property. This estimate is based entirely on financial information provided by the potential borrower. Pre-qualification is not the same as pre-approval because it is not legally binding or even accurate since the person's financial information is not verified.

The money borrowed, not including any accrued interest.

Principal and Interest
The interest owed on a loan and the amount paid towards the principal make up the monthly loan payment amount.

Property Report.
A legal document prepared by a surveyor that shows the locations of all visible public and private improvements relative to property boundaries. 2. A legal disclosure that developers of timeshare properties are required to give to prospective buyers.

Property Tax

A levy or tax imposed by a municipality on real estate and personal property. The amount of tax varies depending on the property value.

Property Value

The worth or amount of money a real property is sold for depending on the price negotiated by a buyer and seller.

Purchase Agreement
A written contract between the buyer and seller of a property that states the buyer's intention to pay a specific amount for the property by a certain date. The buyer and seller must both sign the agreement if and when the offer is accepted. Also called a purchase contract.