First Time Homebuyer’s Real Estate Word for Today is Escrow

In a recent episode of the Emmy award winning television show, Cash Cab, several people with stumped by the acronym, FSBO. This is a often term often used in the real estate world to describe a person selling their home by owner (For Sale By Owner). As a REALTOR® I was a bit surprised that such a simple term I use everyday would be unknown to so many. But then it got me thinking of all the times a glazed look came over a buyer’s eyes when I talked about escrow or earnest money. These can easily be confused with other real estate and mortgage terms like down payment or cash to close. It is totally understandable because most homebuyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Homebuyer that I thought an online glossary of real estate terms might be helpful. So over the next few weeks I am going to have a series of posts for the first time homebuyer with explanations of the most often used (and sometimes confusing) real estate terms. This way you can skip buying that big “how to buy a house” book or attending that First Time Homebuyer Class and have a quick resource at your fingertips. Today’s Real Estate Term is:

Escrow This term can be confusing as it is used a few different ways. In some states, going into escrow is defined as the period of time after the purchase agreement is signed but prior to closing. In Minnesota we call that time period, pending, not escrow.

In Minnesota, the term escrow means funds held by a third party for a future payment. The most common time a first time buyer hear the term used is in regard to the required funds held in escrow by their mortgage company on a monthly basis to cover the taxes and property insurance for the home. This amount will be added to the monthly payment and the mortgage company will be then responsible for making the payments directly to the insurance company and the county for taxes. Putting funds into escrow is not required for all buyers. If a significant down payment is made at the time of purchase, a lender will not require funds to be placed in escrow for taxes and insurance. A buyer can then pay their insurance company and county directly.

There is another time when funds may be placed in escrow. There are some instances where essential repairs cannot be made prior to closing. In this instance, a mortgage company may allow funds to be place into the title company's escrow account on the date of closing and held there until the repairs are made. It is now rare that a mortgage company will allow this; usually only in the case of off season weather where it would be impossible to make the repair such as installation of a septic system or cement driveway in the winter.



Copyright 2010 Teri Eckholm http://www.terieckholm.com/

First Time Homebuyer’s Real Estate Word for Today is Earnest Money

In a recent episode of the Emmy award winning television show, Cash Cab, several people with stumped by the acronym, FSBO. This is a often term often used in the real estate world to describe a person selling their home by owner (For Sale By Owner). As a REALTOR® I was a bit surprised that such a simple term I use everyday would be unknown to so many. But then it got me thinking of all the times a glazed look came over a buyer’s eyes when I talked about escrow or earnest money. These can easily be confused with other real estate and mortgage terms like down payment or cash to close. It is totally understandable because most homebuyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Homebuyer that I thought an online glossary of real estate terms might be helpful. So over the next few weeks I am going to have a series of posts for the first time homebuyer with explanations of the most often used (and sometimes confusing) real estate terms. This way you can skip buying that big “how to buy a house” book or attending that First Time Homebuyer Class and have a quick resource at your fingertips. Today’s Real Estate Term is:

Earnest money The funds that a buyer submits with their offer or purchase agreement to demonstrate to the seller their seriousness about buying the property. It should be an amount sufficient enough to indicate to the seller that the buyer will not walk away from the deal without good reason. It is not the same as a down payment. If your offer on the home is accepted, the earnest money check will be cashed and placed into a broker’s trust account. The funds will go toward the purchase price of the home.

Copyright 2010 terieckholm.com

TEN Reasons WYOMING, MN is A GREAT Place to Call HOME!

People love living in Wyoming. And I am not talking about the state; I am referring to the City of Wyoming, located just three miles north of Forest Lake, Minnesota. Though some may think the area was named after the state out west, it was named by Dutch and German immigrants who settled the area when they arrived in the late 1800's. They had relocated from the east coast and their new Minnesota home reminded them of Wyoming Valley in Pennsylvania.
With the recent annexation of Wyoming Township, approximately 7000 people call the city of Wyoming, Minnesota home.
Here is a top ten list of reasons why this small town is such a great place to live:

#10-The Wyoming Library. Giese Memorial Library is a full service library open 6 days a week (closed Mondays). Located in the center of the community on Forest Blvd (Hwy 61) there is always something special to do...story time, author readings, computer classes. CLICK HERE for additional library information.

#9-Local Police and Fire. The City of Wyoming is proud to have its own police department and volunteer fire department.

#8-Wyoming Elementary. Grade school aged children living in Wyoming do not have to travel far to class as Wyoming Elementary is located in the heart of the community on Forest Blvd. The school is an integral part of the Forest Lake Area School District 831.

#7-Parks, Playgrounds and Trails. "Where can I play?" is hardly ever an issue for residents in Wyoming. With 17 playgrounds, parks and trails located throughout the community, there is always somewhere to have fun!

#6-Natural Resources. Wyoming, MN encompasses a large portion of the Carlos Avery Wildlife Management area which is a gem of lakes and wetland for hiking, bird watching and hunting. The Wyoming community is on the south end of the Sunrise River and several residents make their homes on the shores of Comfort and Ashton Lakes.

#5-Employers. Fire trucks and fiberglass are two of the many things manufactured in the Wyoming community. Several companies including AllSafe, Artifex Millwork, Hallberg Marine, Polaris, Rosenbauch General Safety, Sunrise Fiberglass and URSA Major call Wyoming home.

#4-Hospital. Most suburban residents have a bit of a drive when there is a medical emergency but not the residents of Wyoming. Fairview Lakes Medical Center is a full service hospital with 24/7 urgent and/or emergency care.

#3-Conveniently Located. Just off 35E and north of the 35E/35W split makes getting to Minneapolis, St. Paul or Duluth a breeze.

#2-Eclectic Options for Living. Whether you want the convenience of a low-maintenance detached townhome or the wide open spaces of a 10+ acre hobby farm, you can find an affordable option in Wyoming.

#1-Friendly People. The number one reason for living in Wyoming is the welcoming community atmosphere. Isn't that what most people search for in a place to call home?

Copyright 2010 terieckholm.com