As with any industry, real estate has its own language. Here is a list of a few of the terms and their definitions.
CMA--Comparable Market Analysis. This is something that we as Realtors do to help you decide how much your house will sell for. We use data from comparable properties using sold, pending, and active listings.
PENDING--This is the same as "under contract". It means that the buyer and seller has reached an agreement to terms of the sale. They may or may not be through the option period.
OPTION--This is the period of time that the seller is willing to take the property off the market for the buyer to do inspections.
INSPECTIONS--This is when a buyer hires a certified residential inspector to come and do a thorough inspection of your property to check for any defects. They do not determine the value of the property. That is an appraisal.
APPRAISAL--An appraisal is done by a licensed appraiser to determine the value of your property. This is similar to a CMA but much more thorough. Some people confuse an appraisal with a survey.
SURVEY--This is when a licensed surveyor goes to your property and from the legal description is able to determine where your property lines are. They will also tell you if there are any encroachments or easements.
ENCROACHMENTS--These are things like fences that are not exactly on the property line or a neighbor's tree hanging into your yard.
EASEMENT--An easement is the rights of others to go across your property or use your property. These are commonly utility easements. Title company's will make exceptions on the title policy for easements.
TITLE POLICY--This is an insurance policy against title defects.
TITLE DEFECT--For instance, if the relative of a prior owner steps forward and says that they should have signed off the deed but didn't. The title company will have it fixed.
DEED--The instrument used to convey ownership from one person to another.
DEED OF TRUST--Some states call this a mortgage. It is the document that is recorded that shows you have a mortgage of the property.
PRE-QUALIFICATION--This is when the lender or bank has determined that based on what the buyer has told them that they will qualify for a mortgage.
DU/DO--This is the machine that after being fed the buyer's information determines if it likes the applicant.
QUALIFY--This is when the lender/bank has determined that the information the buyer provided is correct and they will qualify.
CAIVRS--Credit Alert Verification Reporting System. This determines whether or not the buyer is delinquent on any federal debt. FHA and VA require clear CAIVRS.
FHA--Federal Housing Administration
VA--Veterans Administration
HUD--Responsible for overseeing the activities of FHA.
HUD FORECLOSURE--FHA loan gone bad.
PROCESSOR--The person who accumulates all of the above and submits it to underwriting for review.
UNDERWRITING--This is the place where a person who scrutinizes the final submitted documents to determine if they meet underwriting guidelines so the the loan can be sold into the secondary market.
SECONDARY MARKET--These are the investors that buy mortgages from lenders/banks.
This is just a short list of terms. Keep this to refer to and it will help you know what everyone is talking about!