Home Buying Glossary
To help you with the homebuying process, we have listed some common terms you may encounter in your new home journey.
- 1 Month Visit
- This visit occurs 1 month after Home Delivery. During this visit the assigned Service Rep will review manufacturer suggested care of home components, revisit the warranty process and guidelines, and explain the procedure for requesting service.
- 11 Month Visit
- This visit occurs 11 months after Home Delivery. During this visit the assigned Service Rep will review the performance of various home components, revisit the warranty guidelines and timelines, and explain the procedure for requesting service.
- 5 Month Visit
- This visit occurs 5 months after Home Delivery. During this visit the assigned Service Rep will review responsibilities and periodic maintenance of home components, revisit the warranty process and guidelines, and explain the procedure for requesting service.
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- Architectural Design (Elevation)
- This is the term for what the front of your home looks like. Most home plans are available with choices between several different elevations, meaning that although they are the same home plan they will look different from the front, with different roof lines, porch sizes, or placement of windows.
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- The conclusion of the loan transaction, which includes delivery of a deed, financial adjustments, the signing of notes and the disbursement of funds necessary to finalize the sale or loan transaction.
- Closing Costs
- Money paid by the borrower or the seller for various services provided in connection with the closing of a mortgage loan. This generally involves an origination fee, discount points, appraisal, credit report, title insurance, attorney's fees, survey and prepaid items such as taxes and insurance escrow payments.
- Closing Documents
- The documents which are signed at closing. These include: the Deed of Trust or Mortgage with attachments, Promissory Note, Truth-in-Lending Disclosing, and other documents related to the transaction.
- Conventional Mortgage
- A mortgage not insured or guaranteed by a federally insured program (such as FHA or VA).
- Credit Report
- A report by an independent credit bureau that lists the applicant's credit history and the credit rating as reported by the creditor. In addition, the credit bureau may perform some investigative functions and research of other public records.
- Customer Walk Thru
- This occurs 1 day after Internal Acceptance and 2 days prior to Home Delivery. The Customer Walk Thru is a scheduled meeting with the Homeowner facilitated by the assigned Orientation Rep. This meeting provides the Homeowner an opportunity to view their home prior to Home Delivery. Any corrective items identified by the Homeowner are documented and resolved prior to Home Delivery. Note: Since the home is to be 100% complete by Internal Acceptance, there should be no or few items identified.
- CWM (Construction Welcome Meeting)
- The CWM is a scheduled meeting with the Homeowner to introduce their assigned Field Manager. The homeowner is educated on the construction process and expectations are set. Options and schedules are reviewed as well as lot orientation, set-backs, utility placement, easements, etc.
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- Designer Home
- When construction begins on a home but it has not been purchased yet, it is referred to as a “designer home".
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- Earnest Money
- A portion of the down payment delivered to the seller or an escrow agency by the purchaser of real estate with a purchase offer as evidence of good faith.
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- FHA (Federal Housing Administration)
- A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders against loss in the event of a foreclosure. It sets standards for construction and underwriting. FHA does not lend money, nor plan, nor construct housing.
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- Home Delivery
- The Home Delivery was formally known as the NHO (New Home Orientation) and FSO (Final Sign Off). The Home Delivery is a scheduled meeting with the Homeowner facilitated by the assigned Orientation Rep. The Orientation Rep will conduct a feature, function, benefit demonstration of home components and review manufacturer care and maintenance suggestions. The service process and warranty guidelines are explained as well as the 1-5-11 Month Visits (as described below.)
- Home site
- The home site is the location of your new home; the property it will sit on.
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- Internal Acceptance
- This occurs 8 days after QPR8 and 1 day prior to the Customer Walk Thru. The Internal Acceptance is conducted by the Operations Manager and Customer Service Manager. The Managers will conduct a review of the home and sign an internal document representing that the home is 100% complete and ready for the Customer Walk Thru. If one or both Managers feel that the house is not 100% complete, the homeowner will be notified of a rescheduled Customer Walk Thru date.
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- Master-planned Community
- A suburban plan that includes homes and commercial, work, educational and community facilities.
- A legal instrument that conveys an interest in real property given as security for the payment of a debt. In some states, a Deed of Trust or Deed to Secure Debt is used in place of a mortgage.
- Mortgage Insurance
- Insurance which protects the lender against loss which could result from a mortgage default.
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- You may choose other options beyond the standard features for your new home, and these features are in addition to the base price. Each home collection has a list of options, such as a specific type of appliance, flooring, or windows that you may select to create the perfect home for you
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- PDO (Pre-Drywall Orientation)
- The PDO (Pre-Drywall Orientation) is a scheduled meeting with the Homeowner, your Field Manager, and your Orientation Rep to establish quality expectations. This will be the first introduction of the Orientation Rep to the Homeowner. The Field Manager will educate the Homeowner on the construction process to include a demonstration of behind the wall features combined with function and benefit. The Orientation Rep will explain the QPR (Quality Performance Review) process.
- Purchase and Sales Agreement
- A written agreement between competent parties stating terms and conditions of a sale for mortgage loan purposes on real estate.
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- QPR 3 (Quality Performance Review)
- QPR is the acronym for Quality Performance Review. The QPR 3 is a Team walk facilitated by your Field Manager and involves your Orientation Rep, other Field Managers and TradePartner Foremen. This walk will begin the Orientation Rep’s responsibility to the process through Home Delivery and include a review of the exterior and interior features of the home.
- QPR 8 (Quality Performance Review)
- The QPR 8 is a team walk facilitated by the assigned Orientation Rep and involves the Field Management Team. The purpose of this walk is to prepare the home for review by the homeowner at the Customer Walk Thru. Field Managers are assigned to evaluate the quality throughout the home. Corrective items will be identified and resolved prior to the Internal Acceptance. The result is that the home is 100% complete by Home Delivery.
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- Rough-in Plumbing
- In homes that have a basement, pipes are often placed in the basement of the home to give you the convenience of adding a bathroom at a later date. The addition of these pipes is called “rough-in plumbing.”
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- Standard Features
- Standard features are options that are included in the base price of your new home. Examples include a specific type of appliance, flooring, or windows, and vary by home collection.
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- The evidence of the right to or ownership in property. Title may be acquired through purchase, inheritance, gift, or through foreclosure of a mortgage.
- Title Company
- The company that researches the title of the property and guarantees that the research is correct, provided a title policy is issued.
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- The process of analyzing the loan application and supporting information to decide whether the loan is acceptable and at what terms.
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- VA (Veterans Administration)
- An independent agency of the federal government. The VA Home Loan Guaranty Program is designed to encourage lenders to offfer long-term, low down payment mortgages to eligible veterans by guaranteeing the lender against loss in the event of a foreclosure.
Before planning the construction of our Shea Homes® condos here in Arizona, our leadership team toured west coast condo communities and met with construction professionals to understand any challenges and how-to best approach building a condo community buyers will want to be a part of. One of the biggest challenges noted during these tours […]Oct 21 at 6:39 PM • Shea Blog