Regardless of whether you are buying or selling your home in Louisville or Bullitt County Kentucky, it helps to know the lingo.
ARM - Adjustable Rate Mortgage - A loan with a rate that adjusts based on a given index. Despite the new, ARMs are not all bad. However, it is important to understand exactly how and when the rate will adjust.
APR - Annual Percentage Rate - A rate that reflects the actual cost of the loan including any discount points and fees.
Bedroom – According to Kentucky Residential Building Codes, a room must have direct access to the exterior of the property to be considered a bedroom.
CMA - Comparative Market Analysis or Competitive Market Analysis - A market report showing the value of your property as determined by the sale of similar properties in your neighborhood.
Conventional Loan - aka Fixed-Rate Mortgage - A loan with a rate that does not change over the life of the loan
Discount Points - aka pre-paid interest - An upfront fee paid to get a lower interest rate. One point equals 1%.
DOM - Days on Market - This is the time between when the property is listed and when a contract is accepted. It does not include Days under Contract.
DUC - Days under Contract - The time between when a contract is signed by both parties and the closing.
Earnest Money (aka Escrow Money, Good Faith Deposit) - Money given by the buyer to the seller as a sign of their commitment to purchase the property. In the Louisville-Bullitt County area 1-2% is common, however, this is a negotiable point. This money is credited to the buyer at the closing.
Equity - The difference between the value of the property and the amount owed on property.
GLAR - Greater Louisville Association of REALTORS
Loan-to-Value (LTV) - The ratio of the amount of the loan being requested to the appraised value of the house. In general, 100% loans have been eliminated. Most lenders are now requiring at least 3% from the buyer.
Market Value - The price that your Louisville - Bullitt County home could bring based on current market conditions.
MLS - Multiple Listing Service - An association that collects and distributes information about properties for sale in an area. The MLS is open to local real estate agents and brokers. The data can be viewed (but not created or modified) by the public. The MLS for the Louisville Metro Area is managed by GLAR.
REALTOR - A real estate agent who is a member of the National Association of REALTORS (NAR) - To become a REALTOR, an agent must complete ethics training and take an oath to abide by a Code of Ethics. Not all real estate agents are REALTORS.
SQFT - Square-Footage - A measurement of the size of a home based on the exterior dimensions. In Kentucky, only above-ground square footage (AGSF) is counted unless the basement is a finished walkout.
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