We’ve provided definitions for real estate lingo and discussed various real estate concepts several times in the past. For instance, in one of our first blog articles, we talked about the concept of “fee simple” and discussed its current meaning and historical significance. More recently, we’ve spent quite a bit of time discussing various terms used in the mortgage industry. It’s important that our readers have an understanding of at least some of the terms used in real estate. Many of our readers become buyers at some point in the future, and having an understanding of at least a few key terms will ensure a smoother and more hassle-free buying experience.
Today, we’re going to continue this trend and discuss a few additional concepts. Here are 3 more concepts our readers should know about.
Mortgage Application Fees
Mortgage application fees are fees which come about as a direct consequence of applying for a mortgage loan. Some of these fees come about necessarily when an application is submitted; other fees only come about when the application is accepted by the lender. The amount of these fees will vary depending on the lender. A few of these fees include: lender application fees due upon loan acceptance, third part appraisal fees, third party inspection fees, and others as well.
Broker’s Price Opinion (BPO)
A “Broker’s Price Opinion,” BPO, is the broker’s estimation of the final net sales price of a certain property. The BPO is determined prior to the conclusion of the transaction in question. The “net sales price” is the price that the buyer pays once all adjustments and concessions have been accounted for. In other words, it is the actual amount the buyer pays.
Installment Land Contract
An installment land contract is an agreement whereby the buyer of a given property takes physical possession while the seller retains title until the loan is fully paid off. In this scenario, no outside lender is used, and so the seller retains the title as a form of collateral to secure the transaction.
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