We often receive questions from clients or potential clients asking for explanations on key phrases and terms. We know there is a lot of jargon and real-estate speak out there, so we thought we’d break down a few phrases for new buyers and sellers.
Prequalified vs Preapproved
When you first start looking to buy, it’s a good idea to get pre-approved for a loan. Clients have asked us what the difference is between being prequalified vs preapproval. Here’s the rub: Being prequalified means you might (as in there is a possibility but not a certainty) get a loan for the amount stated to you by your bank. The amount is contingent on the information you provided to your bank proving accurate.
Preapproval, on the other hand, means your credit history, background check, tax returns, and employment verification have all been checked and proven. Furthermore, it means the lender is stating they are willing to give you the loan amount they name. To a seller, this equals a solid buyer — one who it is very unlikely will have difficulty paying the amount they bid.
One Time Show Listing
Most often used by an agent showing a for sale by owner (or FSBO) listing, a one time show listing is an agreement the homeowner has with the real estate agent to provide the showing agent a commission for selling his or her property.
Closing Costs & Brokers
Closing costs are expenses accrued by buyers and sellers when they transfer ownership of a property. A broker is an agent who has continued his or her education beyond the agent level and passed a broker’s exam to become licensed. They can work alone or agents will hire them, though typically there is one broker per office.
Do you have real estate questions? We’d love to help! Or if you’re looking to buy or sell in the Nashville area, we have a team of award-winning agents available to assist you. Give us a call at 615-550-5565 or drop us a line today.