Get Ready
Guides, glossary, and answers
Downloadable guides for buyers, sellers, relocators, and investors — plus a plain-English glossary and the questions I hear most, answered straight.
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Straight Answers
Frequently asked questions
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Reference
Real Estate Terminology Explained
- Pre-qualification
- A lender's early, informal estimate of what you might qualify to borrow, based on numbers you self-report. It's a fine starting point, but pre-approval carries far more weight with sellers.
- Appraisal
- A licensed appraiser's independent estimate of a home's value, required by most lenders before they'll fund a loan. If it comes in below the contract price, that gap has to get resolved before closing.
- Appraisal gap
- The difference between your offer price and a lower appraised value. In competitive offers, buyers sometimes agree upfront to cover part of this gap in cash.
- PMI (Private Mortgage Insurance)
- An added monthly cost on conventional loans with less than 20% down, protecting the lender — not you — if you default. It typically drops off once you reach 20% equity.
- HOA (Homeowners Association)
- An organization that manages shared rules, amenities, and fees in some neighborhoods. I'll flag any HOA dues and restrictions upfront so there are no surprises.
- Buyer's agent vs. listing agent
- The buyer's agent represents the buyer; the listing agent represents the seller. In Texas, one agent can sometimes represent both sides (dual agency) — I'll always explain what that means before it happens.
- Survey
- A licensed surveyor's drawing of a property's exact boundaries, easements, and structures. Often needed for financing, especially if fencing or additions have changed since the last one.
- Homestead exemption
- A property-tax break for Texas homeowners on their primary residence, lowering the home's taxable value. Worth filing for the year after you close.
- Mineral rights
- Ownership of what's below the surface — oil, gas, and minerals — which can be sold separately from the land itself in Texas. Especially relevant here in the Permian Basin; I confirm what's included with any sale and what isn't.
- Short sale
- When a lender agrees to accept less than what's owed on a mortgage, usually because the seller can't keep up with payments. It requires lender approval and typically takes longer than a standard sale.
- Power of attorney (POA)
- A legal document letting someone sign closing documents on a seller's or buyer's behalf when they can't be present — common with deployments, medical situations, or out-of-state heirs.
- Cap rate
- A quick way investors compare a rental's income potential — annual net operating income divided by purchase price. Useful for comparing deals, though I always run the fuller numbers with you too.
- Closing
- When the new title is officially recorded with the county and ownership transfers to you. This is the finish line — the day the deal becomes real.
- Closing Disclosure
- A form you receive before closing that spells out your final loan terms, projected monthly payment, and closing costs. I always recommend reading it closely and asking questions before signing day.
- Collateral
- Something of value — in this case, your home — that's held to guarantee repayment of a mortgage or loan.
- Commission
- A percentage of the sale price, or a fixed fee, paid to an agent at closing. Commission is negotiated upfront, in writing, before I start working with a buyer or seller.
- Comparables ("comps")
- Recently sold homes in your area with similar size, condition, and features — the raw data behind every CMA I put together.
- Counteroffer
- A seller's (or buyer's) response to an offer that changes price, terms, or timeline instead of accepting outright. Most deals involve at least one round of these.
- Debt-to-income ratio (DTI)
- How your monthly debt payments compare to your monthly income — one of the key numbers a lender uses to decide how much you can borrow.
- Down payment
- The portion of the purchase price you pay upfront, separate from the mortgage itself.
- Equity
- The difference between what your home is worth and what you still owe on it. It's what you walk away with — and what builds your next move.
- Adjustable-rate mortgage (ARM)
- A loan where the interest rate is tied to a financial index, so your payment can move up or down over time.
- Annual percentage rate (APR)
- The percentage of interest you'll be charged on a home loan, expressed as a yearly rate.
- Fixed-rate mortgage
- A loan where the interest rate stays the same for the entire term — no surprises in your payment down the road.
- FHA loan
- A mortgage financed through a private lender and insured by the Federal Housing Administration, often requiring a lower down payment and easier qualifying.
- VA loan
- A no-down-payment loan available to those who've served in the Armed Forces, issued by private lenders and guaranteed by the Department of Veterans Affairs.
- Home equity line of credit (HELOC)
- A loan or line of credit your lender may offer using the equity you've built in your home as collateral.
- Home inspection
- A licensed inspector's walkthrough of a property to flag issues that aren't obvious at a showing, documented in a report for the buyer.
- Home protection plan
- A one-year service contract covering repair or replacement costs on items like the stove, dishwasher, A/C, or water heater — something I always discuss with buyers and sellers.
- Mortgage insurance
- Insurance that protects the lender — not you — if you're unable to repay the loan. Usually required when your down payment is under 20%.
- Mortgage note
- The legal promise to repay your loan at a set interest rate over a specific term, secured by the mortgage on your home.
- MLS (Multiple Listing Service)
- The database real estate agents use to list and search properties for sale — the most reliable source for accurate, up-to-date listing information.
- Principal
- The actual amount you borrowed, separate from interest.
- Property taxes
- Taxes assessed by the city, county, and state, often collected as part of your monthly mortgage payment.
- REO (real estate owned)
- A foreclosed property currently owned by the lender that financed it, rather than by an individual seller.
- Reverse mortgage
- A loan specifically for seniors that lets them convert home equity into cash without selling.
- Title
- The legal document proving ownership of a property and its history of transfers — separate from title insurance, which protects that ownership.
- Underwriting
- The lender's full review of a buyer's financial ability to repay a loan, including a credit check and property appraisal.
Plan Your Numbers
Mortgage Calculator
Estimate your monthly payment before we talk strategy. Adjust the price, down payment, rate, and term to see what fits your budget in the Permian Basin.
$100K$1.5M
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2%10%
Estimated Monthly Payment
$2,528/mo
Loan Amount$400,000
Down Payment$100,000
Purchase Price$500,000
Loan Term30 years
Estimate only — principal & interest. Excludes taxes, insurance, and HOA. Kristin can connect you with a trusted local lender for exact figures.
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I look forward to the opportunity to work with you.