A professional association of independent home inspectors whose
members must meet certain education and performance
requirements.
Nail pops
Nails in load-bearing parts of new homes that pop out slightly due
to settling of the structure.
NAR Code of Ethics
A formal code of ethics and standards of practice established by the
National Association of Realtors (NAR) and by which its members must
abide.
National Association of Exclusive Buyer Agents
National trade organization of buyer's brokers whose members do not
accept property listings.
National Association of Home Inspectors (NAHI)
A professional association of independent home inspectors whose
members must meet the group's education and performance
requirements.
National Association of Realtors (NAR)
A trade organization for real estate agents and brokers who become
members by agreeing to abide by the organization's code of ethics.
Members may call themselves Realtors.
National Council of State
Housing Agencies
Nonprofit clearinghouse of information on local and state housing
agencies.
National Foundation for Consumer Credit
Nonprofit clearinghouse of information on nonprofit credit
counseling centers nationwide.
Needs-based pricing
An asking price based on factors such as the funds required to pay
off the seller's mortgage, the cost of remodeling, or the purchase
of another house.
Negative amortization
Occurs when a borrower's monthly payment is too small to cover both
the principal and interest of a loan, so the outstanding balance of
the loan actually grows larger with each payment. Many adjustable
rate mortgages are susceptible to this.
Negative-slope driveway
A driveway that drops from street level to the garage.
Net cash flow
Income from an investment property after expenses such as principal,
interest, taxes and insurance are subtracted.
Net listing
A listing agreement in which the broker's commission consists of the
amount above a net price set by the owner. If the net price is not
met, a commission is not earned.
Net worth
The worth of a person or company based on the difference between
total assets and liabilities.
Neutral bus bar
Grounded metal bar inside an electrical service panel or subpanel to
which all neutral and grounding wires are connected.
Neutral wire
A grounded conductor that carries electrical current back to the
source from an electrical device.
Niche
A small recessed area in a wall.
No-cash-out refinance
When the amount of the new mortgage covers the remaining balance of the
first loan plus closing costs and any liens, and yields no more than
1 percent of the new loan's principal in cash.
No-competition lots
A lot in which the buyer's home will be constructed by a pre-selected
builder.
No-documentation loan
A loan application that does not require verification of income or
assets and is generally based on a combination of strong credit with
a large down payment.
Non-assumption clause
A loan provision that prohibits the transfer of a mortgage to
another borrower without lender approval.
Non-conforming loan
A non-conforming loan is any loan that doesn't meet the
qualifications or is too large to be purchased by Fannie Mae or
Freddie Mac.
Non-liquid
asset
An asset such as a house that is not easily turned into cash.
Non-solicitation order
An order issued by the secretary of state to brokers and agents,
prohibiting them from soliciting listings in a designated area.
Nonrecurring closing
costs
Fees that are only payable once such as appraisal, loan points,
credit report, title insurance and home inspection.
Nosing
The front edge of a stair tread that extends over the riser.
NOTE
A unilateral agreement containing an
express and absolute promise of the signer to pay to a named person,
or order, or bearer, a definite sum of money at a specified date or
on demand. Usually provides for interest and, concerning real
property, is secured by a mortgage or trust deed.
Note rate
The interest rate specified in a mortgage note.
Notice of default
A lender's initial action when a mortgage payment is late and
attempts to reconcile the issue out of court have failed.
Novation
A release of liability to the first borrower of a loan, and the
substitution of a subsequent borrower with the lender's approval.