PJ MAGIN

MISSION STATEMENTI base my business on honesty and trust. Helping people make a smooth transition to the next chapter of their lives. With my skills and knowledge I make it easy to get to the closing table.

EDUCATIONRocky Mountain College of Art and Design Bachelor of ScienceKaplan Professional School 80 hour Real Estate Course

WORK EXPERIENCEKeller Williams Realty, Denver June 2010 - Present RE/MAX Alliance, Westminster 2008-June 2010RE/MAX Professionals, Lakewood 2003-2008

TRAINING COURSESNational Association of REALTORS® EthicsInstitute for Luxury Home MarketingContracts and NegotiationsHUD Laws and RegulationsReal Estate Marketing PrincipalsSeller & Buyer Mastery I & II

DESIGNATIONSCertified Military SpecialistCertified Luxury Home Marketing Specialist Designation (CLHMS)Graduate Realtor Institute Designation (GRI)Short Sales and Foreclosure Designation (SFR)

PROFESSIONAL SOCIETIESNational Association of REALTORS®

ACCOMPLISHMENTS Certified 1st Degree Black Belt in Karate

AWARDSVoted 2012-2014 Five Star Real Estate Professional by 5280 Magazine2012-14 Realtor® Round Table of Excellence Award – Silver, Bronze2012-14 Keller Williams Gold, Silver

SERVICES PROVIDEDSeller & Buyer NegotiationsShort Sale NegotiationsComparative Market AnalysisLeasing Services

REFERENCESKat Sheldahl, Client (720) 315-1252Sarah Coleman, Client (720) 254-1177Jenn Morgan, Managing Broker (720) 810-2149

Our homes are lifetime investments ranking highly among our client’s most important financial investments. Moreover, our homes so frequently evoke personal memories of cherished family experiences that the impending sale of a home becomes an especially strenuous endeavor to my clients. It causes me to approach our task with special sensitivity, concern and professional competence.

Over and over, we at Keller Williams find that our policy of conducting a diligently prepared market analysis of the property and reviewing it in detail with the owner reduces the time spent on trial and error and leads to a faster sale, at a better price and with less inconvenience to my seller.

Thank you for this opportunity. Our presentation is a measure of the quality of service which you can expect from me until your home is sold.

TEST

IMO

NIA

LS

PJ is a fabulous Realtor! She pushed through an insane amount of obstacles with me and my husband while buying our current home. There were tons of issues with it being bank owned and with our lender, but she faced every obstacle with us and found ways to keep us on track when we had other interested buyers nipping at our heels to swoop in if our contract fell through. After a very long struggle, (none of it having to do with PJ or Keller Williams), we closed on our dream house and began our renovations to turn an old abandoned 1929 Colonial Revival home back to its fabulous glory! I can honestly say that through our ordeal, PJ is considered a friend of our family, not just an agent. She was just as invested as we were in the process. She was always keeping us posted on status of everything, and always checking in with us to see if we had questions or what else she could do to help us along. I recommend her to everyone I know! I could go on and on. I’m happy to provide additional commentary on our experience and how PJ helped us to anyone that has questions! - Sarah C.

PJ is an incredible agent. She is knowledgeable and patient. I have used PJ to buy and sell homes and would highly recommend her for either! - Candace H.

PJ was a blast to work with. She helped me sell & buy a house. I will recommend her to my friends and use her again if I am looking to buy another house. - Stephanie V.

PJ helped us find the perfect home for our family! Claire M.

PJ Magin always has the best interests of her customers at heart! She consistently follows through and will go to the ends of the earth to exceed her customers’ expectations. Customer service is lacking in our world, but PJ makes you feel like you are number one. I am most impressed by PJ’s honestly and in-credible integrity. I wouldn’t take my real estate needs to anyone but PJ Magin! - Katherine S.

l Hire a professional photographer to take interi-or/exterior pictures of your home and prepare a virtual tour.l Prepare Interior Brochures with photos along with other information specific to your homel Install a Keller Williams yard sign and place a lock box on the front doorl Submit your home to the local Multiple Listing Service (MLS).l Submit your home with pictures to various internet sites.l Prepare and distribute e-flyers to area Realtors.l Send out a postcard to other families in the neighborhood.l Pre qualify whenever possible all prospective buyers prior to showing the home.l Notify top agents about your homel Pro-actively Prospect for prospective buyers.l Arrange showings of your homel Keep you updated on all showing feedback about the property.l Represent YOU during the contract negotiation.l Coordinate and follow up on: - Property Inspection - Title Commitment - Purchaser’s Loan Progress - Appraisal - Closing Time and Locationl Be present to review final figures and assist you at closing.l Deliver your proceeds to you at Closing.

MARKETINGExtended Marketing Reach When you list with me, we’ll have access to the Keller Williams Listing System, or KWLS. This proprietary, exclusive system ensures your property is marketed online 24/7 through more than 350 of the most popular search Websites.

VALUE & PRICINGLocation aside, establishing the market value of a home can vary widely through the eyes of an appraiser; a REALTOR®, the home’s owner (or relatives and neighbors of the owner), and the buyer. Each looks at it differently and, as a result, each will reach a different conclusion.

An appraiser is usually very logical, he or she bases an evaluation strictly on facts and figures. A comparison is made to the selling price for similar homes within one mile of the home and over the past six months or on the cost to reconstruct the home.

Most homeowners base the value of their home on memories they have experienced in the home and on their emotional attachment to it. Many may also expect to recoup the entire cost for improvements they have made to the home, which in realty is rarely possible.

Most buyers base the value of a home they are considering on what they would have to pay for another home of comparable size, age and general location . A high percentage of buyers have access to various real estate web sites. They look for other homes that are on the market as well as sales data. In addition, they generally ask their REALTOR® to obtain information from the Multiple Listing Service (MLS). Buyers are much more apt than sellers to be affected by media reports of a softening real estate market as well as concerns about economic and world events.

Our job as a REALTOR®’s is to walk the fine line between the logical appraiser and the emotional homeowner and to be able to look at the fair market value in terms of what a potential buyer may be willing to pay and what I can substantiate to an appraiser. In addition, we can evaluate some characteristics of the house that may enhance its marketability, if no its potential selling price.

THE PROCESS

Price and exposure are the two most important factors in getting your home sold in today’s market. 90% of it is how your home is priced, and 10% of it is effectively exposing your property to buyers and other Realtors.

About Pricing Your home… Because your home is not the only one on the market, pricing it comparably to the market is critical to getting it sold. Home buyers are more educated today and generally work with a real estate agent when searching for a home. Most likely a market analysis has been preparedfor buyers comparing several homes within their buying criteria. Without a doubt, the price of the home plays the biggest role in the buyers decision.

About Exposing Your Home… Getting the word out about your home is the other key factor to getting it sold. This is where your Realtor really pays off. Knowing when, where, who and how to promote your property is critical. However, all the exposure in the world through marketing won’t get a property sold if it is overpriced.

90% = Price 10% = Exposure

THE

90/10

RULE

FACTORS THAT DO NOT AFFECT THEVALUE OF YOUR PROPERTY

It is very important to price your property at a competitive market value at the signing of the listing agreement. Historically, your first offer is usually your best offer.

The value of your property is determined by what a BUYER is willing to pay in today’s market based on comparing your property to others SOLD in your area.

BUYERS ALWAYS DETERMINE VALUE!

Out of the Market

No Man’s Land

In the Market

Above

100%

67%

33%

Below

67%

33% 0%

Condition vs. CompsGreat Poor

WHATYOUPAID

WHATYOU

NEED/WANT

COST TO

REBUILD

WHATNEIGHBORS

SAY

APPRAISALFOR

REFINANCE

ASSESSORTAX

VALUE

SELLERS TIME CHART

Qualified Buyer Makes Offer

Negotiate the Offer (3-5 days)

Buyer Starts Loan Application

Inspection Period (8-10 days)

Negotiate Inspection (3 days)

We Find Your Next Home!

Call the Movers...Get Packing

Receive Certified Funds

TOTAL AVERAGE TIMEFROM START TO FINISH

30 DAYS!

STAGE ONE10-15 DAYS

STAGE TWO

GETTING YOUR HOME READY

INSIDECLEAN! CLEAN! CLEAN! Have the carpet shampooed; wax the floors, wash the walls, windows, blinds, drapes and lighting fixtures. Consider engaging a cleaning service, recognizing that it is a justified moving expense.

KITCHEN & BATHROOMS Clear off counter tops. Leave your canisters and little else. Maximize the available counter space. These rooms should be gleaming. If unsightly, have the tub re-caulked and removed mineral deposits and grime from the shower walls. Clean the stove, microwave and refrigerator.

PRIMARY STORAGE AREA Like the garage, its time has come to be liberated. Remember, you can do it now and benefit with a more attractive home on the market, or you can do it in several months from now, in the process of moving when there is no advantage. Do it now.

REPAIRS Identify and repair dripping faucets, sticking or creaking doors, etc. When people see areas of disrepair they begin to wonder whether there may be other unseen problems.

CLOSETS Remove out of season clothing. Organize your clothing and the shoes on the floor. Remove all clutter from cabinets and closets.

FURNITURE The less furniture, the larger a room appears to be.

A LIGHT APPEARANCE As a rule, do everything to lighten the appearance of the home. Raise the blinds, open the drapes and use light colors. Repaint any room beginning to look shabby.

OUTSIDETAKE NOTE Walk the property with a pad and pencil. List anything that you think is less than satisfactory without regard to cost or time. You can review the list afterwards to determine what you can and can’t repair.

THE HOUSE Take a close look as you walk the property. Clean anything that looks unkempt or dirty; repair or replace anything that looks loose, dingy, rusted or broken. Make sure the door bell works. Replace a tired-looking mailbox; clean the exterior light fixtures and wash the windows. Try to spot hanging or rusty gutters, crooked antenna, loose shingles or shutters.

THE YARD Turn and weed the beds; trim the trees and shrubs. Lay in ground cover. Mend the fence, fix the gate latch. Pick up the litter. Consider a landscaping/ lawn service.

OUTDOOR FURNITURE Examine and spot paint your outdoor furniture. If it’s rusty or un-repairable consider disposing of the pieces.

FRONT ENTRY It’s the first thing your buyers see as they stand and wait for the door to open. It’s worth the extra effort to spruce it up.

THE GARAGE The time has come. Discard virtually everything in the garage that hasn’t been used for a year. Wash it down.

THINK IN TERMS OF

A HOME THAT IS SPARKLING

CLEAN, UNCLUTTERED AND SPACIOUS.

ADVICE FROM THE PROFESSIONALS

Maximize the size and best feature of every room. Arrange or remove furniture to make the space look and feel larger and accentuate the positive. Framed mirrors can really add dimension to any room, as well as make it feel larger.

Open all blinds or curtains to allow natural light to every room, as long as there is not an overheating or glare issue. Make sure window coverings are in good shape.

Remove all personal photos and “collections.” Buyers are naturally drawn to these, and are distracted too much from the house.

Organize closets and cupboards. Overly filled closets and storage give the impression that they are inadequate. It helps if the closets look professionally installed.

Remove everything on top or front of the refrigerator. Such Items distract a buyer. Appliances that are clear look more modern.

Remove all fuzzy toilet seat covers and toilet rugs, leave toilet seats down and replace any seats that are chipped or look worn.

Make any functional repairs—sticky doors, drippy faucets, broken fences, marks on the walls

Replace burned out light bulbs.

Clean all windows, both inside and outside.

Clean/dust all fans, light fixtures and light switches.

And, don’t forget the exterior, particularly in the summer months. The adage that “you don’t get a second chance to make a first impression” definitely applies here!

Trim all trees and shrubs—remove any dead matter.

Keep the lawn mowed and watered—pull those weeds! And no dog poop!

Put garbage cans, yard debris, and building materials out of sight.

In winter, make sure the driveway and sidewalk are shoveled and kept free of ice.

Froma professional

Stager...

YOU

DON’T

GET A

SECOND

CHANCE

TO

MAKE

A

FIRST

IMPRESSION

ALL ABOUT THE SHOWING

It’s very important that your home shows well. We’re also aware that it can’t always be perfect. After all, you and your family must live there too. Develop a routine that will allow you to pick up and be prepared to show in a reasonable period without duress...a 45 minute countdown, for example. This means that certain things must be done in advance. For example, beds should be made up first thing in the morning and dirty dishes placed in the dishwasher after use so that you needn’t rush around tending to this matter at thelast moment. This way you can prepare for each showing in an organized, un-hassled routine.

PREPARATION BEFORE EACH SHOWING…

PICK UP EVERY ROOM. Check counters, floors, halls and stairs. Straighten up or remove newspapers, magazines, mail, toys, clothing, recreation gear, snack glasses and dishes.

OPEN ALL DRAPES, SHADES & BLINDS. Do all that you can to create a bright and light ambiance.

THE BEDROOMS. Make up the beds, neatly and attractively, early in the morning. This is a job you don’t want to have to do when you learn that the buyer will be there within the hour.

THE KITCHEN. Be sure all counter tops are clear and “squeaky clean”. Wipe down appliances. Be sure all dishes are in the dishwasher or cleaned and put away. The sink should be clear and clean.

CLEAN AIR. Keep air fresheners in closets, bathrooms and kitchen. Be especially careful to keep kitchen odors fresh: coffee brewing or a cinnamon coffee cake baking in the oven have a lasting inviting effect.

MUSIC, MUSIC, MUSIC. Perhaps you can’t have something baking in the oven every time, but soft, pleasant background music may be very effective.

FIREPLACE. A warm, cozy fire may be just the extra touch that turns the trick.

AIR CONDITIONING. If the weather is warm and sultry, have it operating.

THE BATHROOMS. Keep a set of fresh, attractive towels in each room that you can change instantly.

THE ENTRYWAY. It’s the first and last impression that your buyers will have of your home—make it a good one! Check it regularly for sharpness.

READY, SET, SHOW!

Homes tend to sell more quickly and for higher prices when they show their best!

You’ve done all that you can. Now, relax as we do our job. Soon, you’ll get a call to say “Congratulations…we have an offer to present to you.”

READY FOR THE SHOWING…

Everything is going to be fine. The agent has called in advance and you have made your last minute preparations as indicated in “Preparing for a Showing”.

RELAX. There is nothing more to do. Pick up a magazine while you are waiting. Try to be understanding; the agent may have several home showings scheduled and he or she may be a bit early or late. It’s very difficult to be perfectly precise.

THE DOG. Keep Fido away. Pet lovers will be distracted by your pet. For those who do not have pets, it may be bothersome.

CHILDREN SHOULD BE SEEN & NOT HEARD. This is a new experience for the kids. Naturally, they are excited, but they will disturb the professional flow of the showing. Ask them to remain away from the agent and buyer, to go outside, or to watch TV.

DING DONG. Answer the door as you would for any welcome guest. The agent will take care of the introductions. If there is a situation that needs mentioning, perhaps a sick child in the second bedroom, do so now. You may invite the agent to begin showing the home and then you may excuse yourself.

LOW PROFILE. Discreetly remain away from the buyers. As helpful as you wish to be, your presence will be intimidating. They need to be able to discuss the home freely with one another. And the agent needs to learn from the buyers how they are responding to your home. Your presence can limit that free communication.

HOME INSPECTION CONDITIONS!

1. Damp or wet basement or crawl space. a) Standing water or damp soil b) Inoperable sump pump or forced-air venting systems

2. Defective plumbing, leaking fixtures or traps. a) Leaky hose bibs, faucets and fixtures b) Water damage at walls, ceilings, floors & cabinets c) Slow draining or clogged pipes d) Excessive water pressure

3. Furnace in need of cleaning, adjustment and/or certification. a) Dirty air filters or furnace cabinets b) Incomplete combustion at the burner, back draft or flame flash c) Elevated carbon monoxide levels at the burner, exhaust flue or supply registers d) Inadequate supply (combustion) air

4. Unsafe electrical or wiring conditions. a) Open or damaged wiring b) Oversized circuit breaker not matching the wire size c) Poor wiring connections or reversed polarity d) More than one wire circuit to a single breaker (double tape)

5. Damaged or leaking roofs. a) Missing, damaged or worn shingles b) Flashing missing or installed wrong c) Water damage at roof sheathing, insulation, walls or ceilings

6. Grading problems including gutters and downspouts. a) Soil in contact with the siding, or sloped towards the foundation b) Water trapped between planters or walkways and foundation c) Downspout extensions missing or not directing the water away from the foundation d) Missing splash blocks

7. Foundation movement and/or concrete slabs settling, heaving or deteriorated. a) Slabs or walls that have damaged surrounding building components (walls, masonry, garage doors and plumbing) b) Surface deterioration on exterior concrete flat work

8. Doors or windows not operating properly. a) Garage passage (fire rated) doors won’t fully self close b) Doors or windows difficult to operate c) Screens or hardware missing or non-functioning

9. Rotting wood surfaces at trim, siding or decks. a) Wood-soil contact b) Rot, splitting or damaged c) Painting or stain needed

10. Environmental conditions including mildew, radon gas or lead-based paint. a) Stained surfaces or mildew odor b) Elevated levels of radon gas (must be tested) c) Lead based paint or lead on pipes (must be tested)

BUYER BROKERSThe trend in real estate today is towards Agency Representation. The sellers get a representative and so do the Buyers. The ramifications that the Buyers will be acting with advice designed to improve their position, and you need someone to look out for your interests. When dealing with “opposing agents”, often the most prepared. Broker wins. I love to win!

INSPECTIONSThere is a ‘contingency’ in the Colorado contract that allows the Buyers the right to inspect the property after contract, and terminate if they find any problems. We want to be sure the property is ready for process.

RADON GAS AND OTHER ISSUESAmong the issues that may arise in the transaction, concerns about radon gas and other health hazards have come to play a bigger roll. Most Relocation Buyers will be required by their company to perform a radon test. Levels above 4.0 PCI/l are considered problematic by the average buyer. Colorado is considered a “high radon: state, and the probability of radon is above average. If you know about a high radon count in your property, and have not addressed it, we should discuss a strategy soon.

APPRAISALSThe Colorado contracts allow the Buyer to make the contract contingent upon the Lender’s appraiser confirming that the value and the contract price are the same. This has the effect of placing a (currently) unknown person in charge of our success! Ask me about this!

IMPORTANT INSPECTION INFORMATION

CLOSING 101The closing process finalizes the sale of your home and makes everything official. Also called the “settlement”, the closing is when you get paid and the buyer receives the deed to your home.

Here are a few things to bring to the closing:l House keysl Garage door openerl A picture/photo ID

What can you expect?The closing agent will look over the purchase contract and identify what payments are owed and by whom;prepare documents for the closing, conduct the closing, make sure taxes, title searches, real estate commissionsand other closing costs are paid; ensure that the buyer’s title is recorded; and ensure that you receive any moniesdue to you.

What are your costs:Sellers commonly pay the following at closing:l Mortgage balance and prepayment penalties, if applicablel Other claims against your property, such as unpaid property taxesl Unpaid special assessments on your propertyl Document stamps (or taxes) on the deedl Real estate commissionl Legal fee or title insurance premium

After the closing...make sure you keep the following for tax purposes:l Copies of all closing documentsl All home improvement receipts on the home you sold

COMPANY SERVICE CONTACT MORE INFORMATIONA-1 Home Inspections Inspections Carmine Lombardo 720-690-0567

AAA Survey Survey Company 303-519-7015

Accurate Lead Testing Lead Based Paint Testing 970-224-4923

Carpentry/Remodeling Carpenty/Remodeling Doug Ryan 303-435-0050

Coyle Structural Inspections Structural Inspections Michael Coyle P.E. 303-745-5209

Crystal Clear Window Washers Window Washing Gary Rose 303-931-6850

Economy Floor Covering Flooring Barrie McDonald 303-908-2962

Elite Insurance Group, LLC Insurance Christy Mitchell 303-720-8049

Haymaker Services Handyman Services Bobby Haymaker 720-278-8241

Masonry Scott Mosser 303-406-3068

Northstar Staging Staging for Sale Tina Bebe-Clark 303-472-3897

Now Heating & Air HVAC Sam Johnstone 303-521-8790

People Helpers Professional Organizer Luann Pesonen 303-902-7891

RDS Environmental Radon Mitigation 303-444-5253

See Inside Sewer Scope Sewer Scoping Dan Echols 720-936-3279 www.seeinsidesewerscope.com

Stellar Electrical Services Master Electrician Yurii Wong 303-974-8858

SVM Staggs Morris, LLP Real Estate Attorney Matt Dillman 303-796-2626

Taylor Made Garage Doors Garage Doors Russ Taylor 303-287-7177 Thompson Tax Service Tax Services Charles Thompson 303-532-9038 thompson.charles@comcast.net

The Radon Guys Radon Detection Brad Creed 720-369-4063

LIST OF SERVICE PROVIDERS

ACCEPTANCE: Consent to an offer to enter into contract.

ADJUSTABLE RATE MORTGAGE: A loan that allows the lender to adjust the borrower’s interest rate and payments at prescribed times and with prescribed limits.

AMORTIZED LOAN: A loan which is paid off in equal installments during it’s term.

A.P.R. (Annual Percentage Rate): A term used in the truth in Lending Act. It represents the relationship of the total finance charge (interest, discount points, origination fees, loan broker, commission, etc.) to the amount of the loan.

APPRAISAL: An estimate of real estate value, usually issued to standard of FHA, VA, FHMA. Recent comparable sales in the neighborhood are the most important factor in determining value.

APPRECIATION: Increase in value due to any cause, but usually inflation.

ASSUMABLE MORTGAGE: Purchaser takes ownership to real estate encumbered by an existing mortgage and assumes responsibility as the guarantor for the unpaid balance of the mortgage.

BILL OF SALE: Document used to transfer title (ownership) of PERSONAL property.

CLOSING STATEMENT: A financial statement rendered to the buyer and seller at the time of transfer of ownership, giving an account of all funds received or expended.

CLOUD ON THE TITLE: Any condition which affects the clear title to real property.

COMPARABLE SALES: Sales which have similar characteristics as the subject property and are used for analysis in the appraisal process.

CONTRACT: An agreement to do or not to do a certain thing.

CONSIDERATION: Anything of value to induce anotherto enter into a contract (i.e. money, services, a promise).

DEED: Written instrument which, when properly executed and delivered, conveys title to real property.

DISCOUNT POINTS OR POINTS: A loan fee charged by a lender of FHA, VA or Conventional loans to increase the yield on the investment. One point = 1% of the loan amount.

EARNEST MONEY: Initial deposit made by the purchaser of real estate as evidence of good faith.

EASEMENT: A right to use the land of another.

ENCUMBRANCE: Anything which burdens (limits)the fee title to property, such as a lien, easement or restriction of any kind.

EQUITY: The value of real estate over and above the liens against it. It is obtained by subtracting the total liens from the value.

EQUITY: The value of real estate over and above theliens against it. It is obtained by subtracting the total liens from the value.

ESCROW PAYMENT: That portion of a mortgagor’s monthly payment held in trust by the lender to pay for taxes, hazard insurance, mortgage insurance, lease payments and other items as they become due.

EXCHANGE: The trading of an equity in a piece of property for equity in another.

FANNIE MAE: Nickname for Federal National Mortgage Corp. (FNMA), a tax paying corporation created by Congress to support the secondary mortgages insured by FHA or guaranteed by VA, as well as conventional home mortgages.

FEDERAL HOUSING ADMINISTRATION (FHA): TheFederal Government agency which administers FHA insured loans.

FHA INSURED MORTGAGE: A mortgage under which the Federal Housing Administration insures loans made, according to its regulation, by approved lenders.

FIXED RATE MORTGAGE: A loan that fixes the interest rate at a prescribed rate for the duration of the loan.

FORECLOSURE: Procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default.

GLOSSARY OF TERMS

FREDDIE MAC: Nickname for Federal Home Loan Mortgage Corp. (FHLMC), a federally controlled and operated corporation to support the secondary mortgage market. It purchases and sells residential conventional home mortgages.

GRADUATED PAYMENT MORTGAGE: Any loan wherethe borrower pays a portion of the interest due each month during the first few years of the loan. The payment increases gradually during the first few years to the amount necessary to fully amortize the loan during its life.

INVESTOR: The holder of a mortgage or the permanent lender for whom the mortgage banker services the loan. Any person or institution that invests in mortgages.

JOINT TENANCY: A type of joint ownership of property by two or more people with the right of survivorship.Requires the four unities of time, title, interest and possession.

LEASE PURCHASE AGREEMENT: Buyer makes a deposit for the future purchase of a property with the right to lease the property in the interim.

LOAN TO VALUE RATIO (LTV): The ratio of the mortgage loan principal (amount borrowed) to the property’s appraised value (selling price). Example – on a $100,000 home, with a mortgage loan principalof $80,000 the loan to value ratio is 80%.

MORTGAGE: One type of document used to make property the security for the payment of a loan.

MORTGAGE INSURANCE PREMIUM (MIP): The consideration paid by a mortgagor for mortgage insurance either to FHA or a private mortgage insurance (PMI) company. This insurance protects the investor from possible loss in the case of a borrower’s default on a loan.

MORTGAGEE: The lender of money or the receiver of the mortgage document.

MORTGAGOR: The borrower of money of the giver of the mortgage document.

NOTE: A written promise to pay a certain amount of money.

ORIGINATION FEE: A fee or charge for work involved in the evaluation, preparation and submission of a proposed mortgage loan.

PREPAYMENT PENALTY: A fee paid to the mortgagee for paying the mortgage before it becomes due. Also known as pre-payment fee or reinvestment fee.

PRIVATE MORTGAGE INSURANCE (PMI): See Mortgage Insurance Premium.

PROMISSORY NOTE: A written contract containing a promise to pay a definite amount of money at a definite future time.

REALTOR: A member of local and state real estate boards which are affiliated with the National Association of Realtors (NAR).

RENT WITH OPTION: A contract which gives one the right to lease property at a certain sum with the option to purchase at a future date.

SECOND MORTGAGE / SECOND DEED OF TRUST / JUNIOR MORTGAGE OR JUNIOR LIEN: An additional loan imposed on a property with a first mortgage. Generally a higher interest rate and shorter term than a “first” mortgage.

SEVERALTY OWNERSHIP: Ownership by one person only. Sole ownership.

SURVEY: The process by which a parcel of land is measured and its area ascertained.

TENANCY IN COMMON: Ownership by two or morepersons who hold an undivided interest without right of survivorship. (In the event of the death of one owner, his/her share will pass to his/her heirs).

TITLE INSURANCE: An insurance policy which protects the insured (Purchaser or lender) against loss arising from defects in the title.

GLOSSARY OF TERMS .....continued

9/27/2015