Tom Crimmins Realty Blog - Tom Crimmins Realty

Real Estate Word of the Day: Assumption

Real Estate Word of the Day: Assumption

An assumption refers to the transfer of an existing mortgage from the current homeowner to the buyer. Essentially, the buyer "assumes" the mortgage, taking over the responsibility for the remaining loan balance, interest rate, and terms of the original loan. This can be an attractive option for both buyers and sellers under the right circumstances.

One of the main reasons buyers consider assuming a mortgage is to take advantage of a lower interest rate. If the original loan was secured during a period of low interest rates, the buyer can benefit from these favorable terms, potentially saving thousands of dollars over the life of the loan compared to securing a new mortgage at current higher rates. Assuming a…

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Real Estate Word of the Day: Walkthrough

Real Estate Word of the Day: Walkthrough

A walkthrough is a final inspection of a property by the buyer before closing the deal. It typically occurs shortly before the closing date, often within 24 to 48 hours. The primary purpose of a walkthrough is to ensure that the property is in the agreed-upon condition, all requested repairs have been made, and no new issues have arisen since the last time the buyer viewed the property.

During the negotiation phase, the buyer and seller may agree on certain repairs or improvements that the seller needs to complete before closing. The walkthrough allows the buyer to confirm that these repairs have been satisfactorily completed. Additionally, it ensures that the property is in the same condition as when the…

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Real Estate Word of the Day: Variance

Real Estate Word of the Day: Variance

In statistical terms, variance measures how much a set of numbers (data points) differ from the mean (average) of those numbers. It provides insights into the spread or dispersion of data points in a dataset. A higher variance indicates that the numbers are more spread out from the mean, while a lower variance indicates that they are closer to the mean.

While it might seem like a term plucked straight out of a statistics textbook, its implications in real estate are profound and worth understanding. Understanding the variance in property values within a specific neighborhood or region can help investors assess the potential risk and return. A high variance in property prices might indicate a diverse market with…

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Real Estate Word of the Day: Usury

Real Estate Word of the Day: Usury

Usury refers to the act of charging interest on a loan at a rate that exceeds the legal limit set by law. Historically, usury laws were established to protect borrowers from exorbitant interest rates and to ensure fair lending practices. These laws vary by jurisdiction, but their core purpose remains the same: to prevent lenders from exploiting borrowers through excessive interest charges.

Mortgage lenders must adhere to state and federal usury laws when setting interest rates. If a lender charges an interest rate above the legal limit, it can be considered usurious, leading to legal consequences and financial penalties. For borrowers, usurious rates can make mortgage payments unaffordable, potentially leading to…

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Real Estate Word of the Day: Underwriting

Real Estate Word of the Day: Underwriting

Underwriting is the process used by lenders, insurance companies, and investors to assess the risk of providing financial services, such as loans or insurance, to a client. In the context of real estate, underwriting involves a thorough evaluation of the property, the borrower, and the market conditions to determine whether to approve a loan application and under what terms.

The Process for Underwriting

When you apply for a mortgage or a real estate investment loan, the first step is the initial application review. This involves collecting your financial information, including income, credit score, employment history, and existing debts. A crucial part of underwriting is the property appraisal. This is…

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Real Estate Word of the Day: Title Insurance

Real Estate Word of the Day: Title Insurance

Title insurance is a specialized form of indemnity insurance designed to protect property owners and lenders from potential losses arising from defects in the title to a property. Unlike other insurance types, which protect against future events, title insurance protects against claims for past occurrences. This includes any discrepancies or issues with the property's title that may not have been discovered during the initial title search.

When you purchase a property, a title company conducts a thorough search of public records to uncover any potential issues with the title. This search aims to ensure that the seller has a valid title to transfer and that there are no hidden liens, encumbrances, or other…

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Real Estate Word of the Day: Survey

Real Estate Word of the Day: Survey

A survey, in the context of real estate, is a detailed inspection and mapping of a piece of land. This process is carried out by professional surveyors who use specialized equipment to measure and define property boundaries, identify topographical features, and document any existing structures on the land. The end product of this process is a survey report, which includes a detailed map or plat that outlines the precise boundaries and features of the property.

Types of Surveys

• Boundary surveys are the most common type of survey, used to establish the exact boundaries of a property. It’s crucial for determining property lines and resolving any disputes with neighboring properties.
• Topographic surveys…

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Real Estate Word of the Day: Quitclaim Deed

Real Estate Word of the Day: Quitclaim Deed

A quitclaim deed is a legal document used to transfer ownership or interest in a property from one person (the grantor) to another (the grantee). Unlike other types of deeds, such as warranty deeds, a quitclaim deed offers no guarantees or warranties about the property's title. Essentially, the grantor "quits" their claim to the property, transferring whatever interest they may have without making any promises about the validity of the title.

The most defining characteristic of a quitclaim deed is that it makes no warranties or promises about the property's title. This means the grantee receives only the interest the grantor had at the time of the transfer, which could be none. Quitclaim deeds are…

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Real Estate Word of the Day: Origination Fee

Real Estate Word of the Day: Origination Fee

An origination fee is a charge by a lender for processing a new loan application. It is typically a percentage of the total loan amount, often ranging from 0.5% to 1%. This fee compensates the lender for the work involved in evaluating, preparing, and approving your mortgage.

Looking to buy or sell your home on Staten Island? For all your real estate needs, look no further than Tom Crimmins Realty! Give us a call at (718) 370-3200, and we can provide you with professionally-trained agents who are flexible to all that you’re looking for!

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Real Estate Word of the Day: Notarization

Real Estate Word of the Day: Notarization

Notarization is a formal process of verifying the authenticity of a document and the identity of the signatories involved. This process is conducted by a notary public—a state-appointed official who acts as an impartial witness in the signing of important documents. The notary public ensures that the parties involved in the transaction understand the contents of the document and are signing it voluntarily.

The Notarization Process

The notarization process typically involves three key steps:

1. The notary public checks the identification of each signatory to confirm they are who they claim to be. Acceptable forms of ID usually include government-issued documents such as driver’s licenses, passports,…

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