First time home buyer? Here are Real Estate terms that would help you through the home buying process.
Appraisal or Home Appraisal is the valuation of the property.
Certificate of Title- a document issued to identify the owner of the property.
Closing Costs- are the fees and expenses paid at the closing
of a real estate transaction.
Analysis or CMA is an analysis of the prices at which the homes near the
property are sold to help determine a fair pricing.
Contingencies is an event that must be met in order for the
offer on a home to proceed.
Due Diligence is a step that a responsible buyer must address
in to protect the real estate investment
Earnest Money Deposit- Payment made to the seller to showing the buyer’s serious
Escrow is a process where the deposit is
collected while the deal is being approved by the lender.
FICO Score- A Borrower’s credit score or a
numerical value assigned to lenders based on their credit history.
Fiduciary Duties are the tasks or responsibilities of the
broker that the real estate agent works for.
Good Faith Deposit is the payment made by the Buyer to show that he has serious intention of completing the deal.
HOA or Homeowners association is an organization in a subdivision or condominium that regulates rules and standards. Homeowners association also collect monthly payments for the subdivision or condominium’s amenities.
Loan to Value Ratio- How the lender examines if the loan is worth the risk before
approving a mortgage.
Mortgage is simply put the home loan
Prequalification-The process to determine the
credit worthiness of a borrower that is used to know the amount the buyer can
afford to borrow.
Payment Terms -These are the principal interest
taxes, PMI, etc. Also, these are the monthly and cumulative totals.