B-Credit to Binder

 

B-Credit

An informal term referring to borrowers and applicants with several recent minor delinquencies or credit problems; they usually have credit scores between 580 to 650. Conforming programs tend to deny B-credit applicants. However, B-credit applicants usually have a good chance of improving to A-credit in a relatively short period of one to two years. In the mortgage industry, B-credit borrowers normally have one or more of the following traits: (1) no bankruptcies or foreclosures in the past five years and no repossessions or major judgments in the past four years; (2) three to six late payments on mortgage and installment debts during the past two years; (3) five to eight late payments on revolving debts in the past two years; (4) unpaid collections of $500 to $10,000. Note that a borrower with no recorded credit history is normally graded B.

Bead

A narrow, rounded type of trim molding. It is often decorated with ornamental carvings that resemble beadwork.

Beam

A horizontal load-supporting length of wood, metal or other very strong material.

Bearing Wall

A wall that supports a floor or roof of a building. Sometimes called a load-bearing wall.

Bedrock

Part of the earth’s crust. Taller buildings, especially skyscrapers, need to build or lay pilings on bedrock to access the load-bearing capacity of bedrock, as opposed to hardpan, gravel and clay.

Bedroom Community

A community that is composed primarily of residential properties and little (or no) commerce and industry. The residents overwhelmingly commute to other urban areas and commercial centers for work. Compare with the Exurb entry.

Before-Tax Cash Flow

The income or revenue available after operating expenses, but before the payment of any taxes. Compare to the After-Tax Cash Flow entry.

Below Grade

Any space, structure or improvements that are below the grade of the surrounding land. Foundations, cellars and basements are typically below grade

Below-Market Interest Rate (BMIR)

An interest rate on a mortgage loan that is less than the prevailing interest rate offered on similar loan programs by other lenders. In most cases, borrowers receive below-market rates through the payment of discount points. These discount points can also be paid by the seller or developer, as an incentive to the buyer, as in buydown points.

Belt Course

The belt course is a narrow horizontal band that typically outlines the interior floor levels and often projects from the exterior walls.

Belvedere

Similar to a cupola, the belvedere is an architectural feature located atop a building or projecting from the roof, which has been in use since the Renaissance. Sometimes atop a tower-like structure, the belvedere is typically roofed but open on at least one side, so as to provide light and ventilation the building. The gazebo is a type of belvedere, but one that is usually freestanding and unattached to any other structure.

Benchmark

A real estate surveying term referring to the bronze markers used by the U.S. Coast Guard & Geodetic Survey to indicate sea level measurement at various points in the country. Surveyors can use these benchmarks as local datum from which to measure elevation.

Beneficiary

Essentially, the beneficiary is the person or party who will benefit from a particular agreement or deed. With trusts, the beneficiary is the person or party who benefits from the trust.

Beneficiary Statement

A statement of the principal balance due on a loan, similar to a payoff statement. Escrow agents will sometimes obtain a beneficiary statement when a mortgage loan is to be paid or assumed by a buyer, to ensure that the buyer receives the correct credit amount.

Bequest

The process of disposing personal-as opposed to real-property through a will. Sometimes called the legacy, this would include any cash or non-real estate property.

Best Use

See the Highest and Best Use entry.

Betterment

See the Capital Improvement entry.

Bevel Siding

A type of exterior board-type wall finish that is slightly ticker along the bottom than at the top. See Clapboard entry.

Bid

The amount that a prospective buyer offers to pay for a property.

Bidding War

A situation in which multiple buyers are making competing offers for the same property or product. This is obviously advantageous for sellers, but a bad situation for buyers. Auctions try to create a controlled bidding war situation.

Big Box

In the retail and commercial space market, a big box is a building or store with a significant amount of clear internal span. The most common examples of big box retailers include Home Depot, Lowe’s, Walmart and Staples. Because of their size, they are also often called megastores or super centers and typically contain at least 50,000 square feet of space, with some reaching 200,000 square feet, and are located next to major highways in urban or suburban areas.

Bilateral Contract

Unlike a unilateral contract, a bilateral contract requires both parties to perform certain obligations in exchange for the other party likewise performing obligations. Most real estate sales contracts are bilateral.

Bi-Level

Often called a raised ranch or split-entry, this contemporary style of residential homes is basically a one-story house that is raised half-way above the ground level. This rise exposes the basement and thus provides more light and access to the basement space. The entrance is at ground level, so the foyer normally provides access up to the main living area or down to the basement.

Bill of Sale

A transaction instrument that identifies the details of the sales transaction, including price, item information and terms. The bill of sale is normally used for personal property, rather than real property.

Binder (Insurance)

A preliminary commitment to provide insurance coverage. This coverage is short-term and heavily conditional; it is eventually replaced by the formal insurance certificate.