The share of pending sales that went contingent within two weeks of their listing date.
PITI is an acronym that stands for principal, interest, taxes and insurance. Many lenders will estimate PITI as they are deciding whether a borrower qualifies for a mortgage. PITI stands for principal, interest, taxes, and insurance, and refers to the sum of each of these charges, typically quoted on a monthly basis.
A planned unit development (PUD) is a housing community made up of single family residences, townhomes, and condominiums — as well as commercial units. PUDs offer many common areas owned by the HOA and amenities beyond what normal apartment buildings or townhomes offer, including tennis courts and outdoor playgrounds.
Both pre-qualification and pre-approval provide borrowers with an estimation of how much home they can afford. However, a mortgage pre-approval is a more official step that requires the lender to verify the borrower’s specific financial information and credit history.
Pre-qualification is an early step in the home buying journey. When you pre-qualify for a home loan, you’re getting an estimate of what you might be able to borrow, based on the information you provide about your finances, as well as a credit check.
A price drop counts as any reduction in the asking amount listed for sale on a property. This value counts how many listings dropped their price in San Diego during a given time period.
The prime interest rate is typically awarded to a U.S. bank’s best customers. It’s the best-available loan rate and is usually three points above the federal funds rate: the rate banks charge each other for overnight loans.
A loan’s actual balance, excluding the interest owed for borrowing. This is the original amount borrowed from the lender that needs to be repaid, in addition to all the other costs of borrowing that amount (interest, insurance, and taxes). The principal is paid monthly over the term of the mortgage.
Proof of funds, or POF, is a document that demonstrates how much money a person has available. When purchasing a home, you may need a POF to show the seller that you can cover the cost of the home. The POF gives you more credibility as a buyer.
A purchase agreement demonstrates a buyer’s intent to purchase a piece of property and a seller’s intent to sell that property. The document outlines the terms and conditions of a sale and holds each party legally accountable to meeting their agreement.