Los Feliz Real Estate Glossary

A

Adjustable Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on market conditions. Common in Los Angeles for buyers expecting to sell or refinance within a few years.

Financing

Amortization

The gradual repayment of a mortgage loan through regular payments of principal and interest over time.

Financing

Appraisal

A professional evaluation of a property's market value, typically required by lenders before approving a mortgage. In Los Feliz, appraisals consider unique factors like historic architecture and hillside locations.

Valuation

As-Is

A property sold in its current condition with no repairs made by the seller. Common with estate sales and fixer-uppers in older Los Feliz neighborhoods.

Transaction

B

Backup Offer

A secondary offer submitted after a property is already in escrow. Common in competitive Los Angeles markets.

Transaction

Bridge Loan

A short-term loan used to bridge the gap between buying a new home and selling your current one.

Financing

Buyer's Agent

A real estate professional who represents the buyer's interests in a transaction.

Professionals

C

Closing Costs

Fees and expenses paid at closing, including loan fees, title insurance, escrow fees, and recording fees. In Los Angeles, expect 2-5% of the purchase price.

Transaction

Comparative Market Analysis (CMA)

A report comparing your property to similar recently sold properties to determine market value.

Valuation

Contingency

A condition that must be met for a real estate contract to be binding. Common contingencies include financing, appraisal, and inspection.

Transaction

D

Debt-to-Income Ratio (DTI)

The percentage of your monthly gross income that goes toward debt payments. Lenders typically want DTI below 43%.

Financing

Down Payment

The upfront cash payment made when purchasing a home, typically 3-20% of the purchase price.

Financing

Dual Agency

When one agent represents both buyer and seller in a transaction. Requires written consent in California.

Legal

E

Earnest Money

A deposit showing a buyer's serious intent to purchase, typically 1-3% of the purchase price. Held in escrow and applied to closing costs or down payment.

Transaction

Equity

The difference between your home's market value and what you owe on the mortgage.

Investment

Escrow

A neutral third party that holds funds and documents during a real estate transaction until all conditions are met. Required in California real estate transactions.

Transaction

F

FHA Loan

A government-insured mortgage requiring lower down payments (as low as 3.5%) and credit scores. Popular with first-time Los Angeles homebuyers.

Financing

Fixed-Rate Mortgage

A mortgage with an interest rate that remains constant for the entire loan term, typically 15 or 30 years.

Financing

Foreclosure

Legal process where a lender takes possession of a property due to the borrower's failure to make mortgage payments.

Transaction

G

Good Faith Estimate (GFE)

A document from lenders estimating all closing costs, now replaced by the Loan Estimate form.

Financing

H

Home Inspection

A professional examination of a property's condition, including structural, electrical, plumbing, and mechanical systems. Highly recommended before purchasing any Los Feliz home.

Transaction

Homeowners Association (HOA)

An organization that manages common areas and enforces rules in condominiums, townhomes, or planned communities.

Property

HPOZ (Historic Preservation Overlay Zone)

Los Angeles zoning designation protecting historic neighborhoods. Many Los Feliz properties are in HPOZ districts, requiring approval for exterior changes to preserve architectural character.

Los Feliz SpecificZoning

I

Interest Rate

The percentage charged by a lender for borrowing money. Even small rate differences significantly impact monthly payments.

Financing

J

Jumbo Loan

A mortgage exceeding conforming loan limits set by Fannie Mae and Freddie Mac. Common for Los Feliz properties due to high home values.

Financing

L

Lien

A legal claim against a property for unpaid debts. Must be cleared before property can be sold or refinanced.

Legal

Listing Agent

The real estate professional representing the seller in a transaction.

Professionals

Loan-to-Value Ratio (LTV)

The ratio of the loan amount to the property's value, expressed as a percentage.

Financing

M

Market Value

The most probable price a property would bring in an open and competitive market.

Valuation

Mortgage

A loan used to purchase real estate, secured by the property itself.

Financing

Multiple Listing Service (MLS)

A database of properties for sale, accessible to real estate professionals.

Market

N

Net Proceeds

The amount a seller receives after paying off the mortgage, closing costs, and other expenses.

Transaction

O

Offer

A formal proposal to purchase a property at a specified price and terms.

Transaction

Open House

A scheduled time when a property for sale is open for viewing by potential buyers.

Marketing

P

Pre-Approval

A lender's conditional commitment to lend a specific amount based on verified financial information.

Financing

Principal

The original amount of money borrowed in a mortgage loan, not including interest.

Financing

Private Mortgage Insurance (PMI)

Insurance required by lenders when down payment is less than 20% of the home's value.

Financing

Property Taxes

Annual taxes based on the assessed value of your property, paid to local government.

Taxes

Q

Quitclaim Deed

A legal document transferring ownership without guaranteeing the title is free of claims.

Legal

R

Real Estate Agent / Realtor

A licensed professional who helps buyers and sellers with real estate transactions. A Realtor is a member of the National Association of Realtors.

Professionals

Refinance

Replacing an existing mortgage with a new one, typically to get better terms or lower interest rates.

Financing

REO (Real Estate Owned)

Property owned by a lender after an unsuccessful foreclosure auction.

Transaction

S

Seller's Market

Market conditions where demand exceeds supply, giving sellers more negotiating power and potentially higher prices.

Market

Short Sale

Selling a property for less than what is owed on the mortgage, with lender approval.

Transaction

Square Footage

The measurement of a property's interior living space, typically excluding garages and unfinished areas.

Property

T

Title

Legal ownership of a property, documented and transferred through deeds.

Legal

Title Insurance

Insurance protecting buyers and lenders from title defects discovered after purchase.

Legal

Transfer Tax

Tax paid when property ownership is transferred from seller to buyer, typically paid by the seller in California.

Taxes

U

Underwriting

The process lenders use to evaluate a borrower's creditworthiness and the property's value before approving a loan.

Financing

V

VA Loan

A government-backed mortgage for veterans and active military members, often requiring no down payment.

Financing

W

Walk-Through

A final inspection of the property by the buyer before closing to ensure agreed-upon repairs are complete.

Transaction

Z

Zoning

Local laws regulating how property can be used, including residential, commercial, or mixed-use designations.

Legal