Thinking about buying a home? Do you know these real estate terms?
/Start your path with confidence. We have compiled a list of some of the most common terms when buying a home.
Appraisal: A professional analysis used to estimate the value of the home. A necessary step in validating a home’s worth to you and your lender to secure financing.
Closing Costs: The cost to complete a real estate transaction. Paid at closing, they include: points, taxes, title insurance, financing costs, items that must be prepaid or escrowed. Ask your lender for a complete list of closing cost items.
Credit Score: A number ranging from 300-850, that is based on the analysis of credit history. Helps the lender determine the likelihood that you’ll pay debts.
Down Payment: Down payments are typically 3-20% of the purchase price of the home. 0% down programs do exist, ask your lender for more information.
Mortgage Rate: The interest rate you pay to borrow money to buy your house. The lower the rate, the better.
Pre-Approval Letter: A letter from a lender indicating that you qualify for a mortgage at a specific amount.
Real Estate Professional: An individual who provides services in buying or selling real estate. Real Estate Professionals are there to help you through the confusing paperwork, find your dream home, sell your home for top dollar, help negotiate any of the details that come up, and to help you know exactly what’s going on in the real estate market.
Buying a home can be intimidating if you are not familiar with the terms used during the process. The best way to ensure that your home-buying process is a confident one is to find a real estate professional who not only puts your family’s needs first, but will guide you through every aspect of the transaction with ‘the heart of a teacher.’ Give me a call today and lets find you your dream home.
