These terms are handy to know terms when you are involved in either buying or selling real estate:

Disclosure Statements
These are most often prepared by the person selling a property. They can include a property condition disclosure, a lead based paint disclosure (for properties built prior to 1978), and a septic disclosure to name a few. You should ask for copies prior to preparing a written offer.

Good Faith Estimate
A lender is required to provide a borrower this document at loan application. It provides the borrower a breakdown of their loan costs, closing costs and downpayment required. It also gives an estimate of the total monthly payment. The numbers from the Good Faith Estimate and the closing statement should align fairly close, if not you should ask questions.

MIP
This stands for Mortgage Insurance Premium. If your obtaining a mortgage with a loan to value greater than 80%, then the lender will require mortgage insurance in most cases. The premium is usually paid as part of your monthly house payment. For some loan programs a portion of the premium is collected when the loan is funded.

Lien
This is a claim by someone or a company on a property, usually for money owed. In Tennesse a Deed of Trust is filed with the Register of Deeds in the county where the property is located. This document reflects the terms of the loan, and is a matter of public record.

Buyer’s Market
This is a a term used when the market is in the buyer’s favor. The buyer usually has the advantage when it comes to negotiations. A buyer’s market occurs when there are more homes for sale than there are buyers to purchase them, thus forcing sellers to me more aggressive with pricing. Usually homes take in excess of six months to sell in this type of market.

Seller’s Market
This term is used when there are not enough homes available for the number of buyers looking to purchase. This environment gives the seller the advantage when it comes to negotiations. In this type of market you will see home prices on the rise as many properties will receive multiple offers. In this kind of market, homes that are priced right and in good condition may only be on the market for a few weeks.