Glossary – P

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Pocket Listing

A pocket listing is an agreement between the seller and the real estate agent. The contract allows the real estate agent to sell the property via his private network.

Pre-Qualification

Pre-Qualification is the process of credit estimation for each borrower. Lenders review the creditworthiness information of the individual loan recipient. Pre-qualification is the lender’s estimate of the loan size for the subject person.

Property Tax

Property tax is a tax payment on a property owned by an individual or organization. The local government defines a tax for each homeowner based on the location of the property.

Principal

The definition of principal refers to the initial size of the loan. The monthly repayment of the loan is set by the sum of the principal. As the repayment progresses the borrower’s equity in the home increases.

Pre-Approval Letter

The pre-approval letter is a legal document provided by the mortgage company. The document states the borrower’s finances, as well as the affordable sum of the loan. A pre-approval letter is a guarantee that the borrower is capable of buying the home.

Private Mortgage Insurance

Private mortgage insurance (PMI) is issued by the lender and provided by a private insurance company. PMI is a rule for the borrower with a down payment of less than 20%. It represents the protection regulation for the lender in case the borrower fails to return the loan.

Property Manager

Property Manager is an individual or a company hired to supervise the rentals. The task of the property manager is daily monitoring of all operations related to the rental. One of the highest goals is to either preserve or increase the value of the property.