How big is an acre? An acre is an area of land equal to 43,560 square feet. For visuality purposes, an acre is most often compared to the size of a football field - not counting the two end zones, which are each 30 feet in length. Now try to envision one square mile, which is equal to 640 acres! Back to top
	Why should I use a real estate agent? A real estate agent is more than just a "sales person." They act on your behalf as your agent, providing you with advice and guidance and doing a job - helping you buy or sell a home. Due to the fast changing market, the data on available listings is not 100% accurate. There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent. There are two types of agents, "Buyer's Agents" and "Seller's Agents". It used to be common for all parties involved to work for the seller, hence the term "Seller's Agent". Nowadays, you will most often find a different type of agent, the "Buyer's Agent". If you are in the market to buy, it would be advisable to use a Buyer's Agent. They can make recommendations on what terms and prices to offer as well as negotiating a deal with your best interest in mind. If you happen to be working with a Seller's Agent, never disclose to them the top dollar you are willing to pay for any property. Keep it narrowed down only to things that you would tell the seller directly. Back to top
	What is equity? Equity is the financial interest or cash value of your home, minus the current loan balance(s). If selling the home, this would also be minus any costs incurred in selling the home. If you're buying a home and don't have very much money for the down payment, you may want to find out if the seller would be interested in "sweat equity". This would allow you to perform the labor on any needed repairs and maintenence to the home, (such as outside repairs, painting or electrical work) in exchange for credit towards closing costs. Back to top
	What is a REALTORŪ? A REALTORŪ is an agent or agency that belongs to the local or state board of REALTORSŪ and is affiliated with the "National Association of REALTORSŪ (NAR). They follow a strict code of ethics beyond state license laws and also sponsor the Multiple Listing System (MLS), which is used to list houses for sale. Back to top
	What is comprehensive homeowners insurance? Comprehensive is the most expensive type of homeowners insurance; it covers the most potential damages such as fire damage, water damage not caused by flooding (which would fall under your Flood Insurance policy), your personal possessions, personal liability, theft and vandalism. It is usually required that you carry at least a basic hazard insurance policy. When concerning homeowners insurance, it's important to shop around as soon as possible to avoid being caught in a jam in the event that your insurance company refuses to insure your home. You have two options concerning comprehensive homeowners insurance: Guaranteed Replacement Cost Coverage & Straight Replacement Cost Coverage. Guaranteed Replacement is not available everywhere, but is recommended if you can afford it as it pays to rebuild your home even if the amount to rebuild exceeds your policy limit. Straight Replacement is a cheaper choice, but it is limited. It will pay to rebuild your house in the event that it is destroyed, however it will only cover costs up to the policy amount - so if you choose this option, make sure to buy enough coverage to rebuild. Back to top
	Besides making my monthly mortgage payment, how can I build equity into my house? When making your monthly mortgage payment, try to send a little bit more. This will go directly to the principal of the loan rather than the interest. Even an extra $50.00 per month can quickly build your equity, as well as knock years off of your loan. Back to top
	How can I figure out my debt-to-income ratio? To figure out where you stand on the debt-to-income ratio, you must first understand the meaning of the figure. Most lenders use the ratio 28/36. The first number, which is also referred to as the front-end ratio, is the percentage of your gross monthly income that you could comfortably afford to spend on your housing payments or mortgage. This figure includes the money you spend on property taxes and insurance as well as the loan payment itself. The second number, which can also be referred to as the back-end ratio, is the percentage of your gross monthly income that should be spent on all long-term monthly debts combined. Use the following guidelines to find out where you stand: - First, figure out your gross monthly income (your income before taxes). To do this, take your gross yearly income and divide it by 12. - Multiply this figure by 28 percent (.28). The amount you come up with is TYPICALLY the amount you could comfortably afford to spend on your housing payments per month. - Now, take your gross monthly income (your gross yearly income divided by 12) and multiply it by 36 percent (.36). The figure shown should be the TOTAL amount of money you spend on ALL LONG-TERM DEBTS COMBINED. To get a more accurate mortgage estimate, tally up your monthly bills - which include car payments, credit cards, child support, alimony, etc. - and subtract this amount from the figure you just came up with. However much money is left over is the amount you should truly be spending on your housing payments per month. Back to top
	How much money can I borrow to buy a home? To begin, you'll need to figure out what your gross income is (before taxes) monthly and yearly. To get a quick ballpark figure, take the yearly income of yourself - and your co-purchaser if applicable - and multiply by 2 to 2 1/2. Most people will fall into this category. There are other things to consider, however. If you have a large down payment combined with little to no bills, the lender may believe that you could afford a more expensive home than the ballpark figure allows. Back to top
	I dont know the zip code of my areas. How do I find an agent that is right for me in my area. Please refer to our find an agent directory, where you will find a qualified licensed agent to help you through the process of buying or selling a home. Back to top
	If I want to buy a house and I know the property and the seller already have an agent, can I act as my own agent and negotiate a lower fee? You probably don't have the correct knowledge to represent yourself. The seller pays the real estate commission, not the buyer, and real estate commissions are already set in the listing contract. It doesn't cost you anything to have your own agent represent you because the seller is already paying for it. Back to top
	Is depreciation common? Generally, real property never depreciates in value, or more so, it is not very common for property to depreciate. This is why it's a great investment. Carefully consider location and community when choosing a home, it could make a big difference. Back to top
	What are basis points? Basic points relates to changes in the interest rate for your home. Back to top
	What are closing costs? Closing costs are expenses incurred by buyers and sellers in transferring ownership of a property. Back to top
	What are comparables or comps? Recently sold properties that are similar in size, location, and amenities to the home for sale. These properties help an appraiser determine the fair market value of a property. Back to top
	What are discount points? Discount points are a type of point paid by the borrower to reduce the interest rate. Back to top
	What are paid advertorials? Paid advertorials are articles written by public relations professionals that have just one goal in mind - to get you to buy a home. I'm sure you've seen them all over Newspaper Ads, Billboards and Internet Ads. They usually start off with phrases like "Imagine yourself living in splendor...." or "Enjoy the luxory of Californian-Style living at an affordable price....." These advertisements are not necessarily bad, but can be very misleading. Back to top
	What are prepayment penalties? A penalty fee charged for paying off a mortgage early, thus allowing banks to still make money off of the loan in the event that you inherit a small fortune. Most loans these days do not have prepayment penalties - and if they do, they are only applicable for the first few years of the loan. Back to top
	What does a back-end ratio mean? A borrower's other debts, such as auto loans and credit cards, figured into the debt-to-income ratio. Back to top
	What does an appraisal mean? An appraisal is an estimate of the value of a certain property by a qualified, independent individual. Back to top
	What does preapproved mean? When you are preapproved, you have a definite commitment from a lender Back to top
	What does the Real Estate Settlement Procedures Act (RESPA) require? The Real Estate Settlement Procedure Act requires the lender to disclose certain information about a loan, including the estimated closing costs and APR. Back to top
	What happens when a property starts to depreciate? When a property depreciates it declines in the value of the property due to poor location, dilapidation, or other factors. Back to top
	What happens when you prequalify? When you are prequalified, the lender gives you an estimate but does not formally commit to giving you a loan. Back to top
	What is a basic policy? A basic policy is a homeowners insurance policy that covers certain perils. Back to top
	What is a broker? An agent who is authorized to open and run his/her own agency. All real estate offices have one principal broker. Back to top
	What is a Buildable acre? A Buildable acre consists of 43,560 square feet of residentially designated buildable land, after excluding present and future rights-of-way, restricted hazard areas, public open spaces and restricted resource protection areas set by the local city, county, or state government. Back to top
	What is a buydown? A type of financing in which a developer or seller arranges for the buyer to get a loan at a rate below the current market rate. The developer or seller pays interest costs in order to lower the interest rate but usually raises the price of the house to recoup this loss. Back to top
	What is a buyers agent? On most transactions, there is usually a listing agent and a selling agent. The selling agent is sometimes referred to as the buyer's agent, because he works on the buyer's behalf and it easier than explaining each time that the "selling agent" is not the listing agent and is actually the buyer's agent. Back to top
	What is a cap? A limit on an adjustable-rate mortgage. Back to top
	What is a closing? The process of finalizing all the dealing associated with the sale and purchase of a home. (Also known as a settlement) Back to top
	What is a commitment letter? A commitment letter is a formal offer of a loan by a lender. The letter states the terms under which the lender has agreed to the loan. Back to top