Whether you’re selling your house or buying a new one, there are some terms that you need to know to be able to go through with the process smoothly. Here are 12 terms that you need to be familiar with:
When buying a home, you usually get acquainted with two types of agents, a buyer’s agent who represents the buyer and a listing agent who represents the seller.
An appraisal of your home needs to be done when you apply for a mortgage. A professional appraiser would come up with an estimate value of the home and do an investigation.
Closing refers to the event when the buyer and seller would reach a settlement and complete the selling process of a property. Documents will be signed and payment will be processed.
All of the expenses such as mortgage fees, title insurance commissions and so on are part of the closing costs. The buyer will mostly pay for these expenses when the deal is closed.
Comparative Market Analysis or CMA
This refers to a report or analysis of similar type of home that are currently on the market or recently sold. It can help determine an accurate value of your home when it comes to how much you would sell it for.
Contingencies are conditions you set that must be met for the deal to push through. Some of the contingencies that you need to have can be the fact that you can get a loan, no hideous things discover during the inspection and the appraised value must be close to your offer.
If you’re interested in a certain home, it’s important to conduct an inspection done by a certified professional. Every nook and cranny needs to be inspected for any possible defects that would help you negotiate for a reduced price.
Listings basically refer to houses that are up for sale. They include important information about the property such as the price, the number of rooms and other amenities. These can be conveniently found online.
Mortgages (Fixed vs. Adjustable)
A mortgage with adjustable rate has a changeable interest rate. While the one with a fixed rate, has a predetermined interest rate through the whole span of the mortgage.
If you have found the perfect home, you could make an offer right away with aid of a real estate attorney. In some cases, the seller might do a counter offer especially if they found your offer to be lower than what they expected to get. If this happens, a negotiation would more likely take place.
Pre approval Letter
A pre approval-letter is what you’ll need from the bank to have an idea of how much you can loan. This can help you decide on what you can afford and get a loan easily.
This is an insurance policy which aims to protect the buyer of the property from any unexpected and unwanted property claims.