As a real estate agent or potential homebuyer, it’s important to be aware of the most frequently-used language in the field. Below are a few select terms that you will undoubtedly hear:
One of the conventional loan types, an adjustable-rate mortgage means the mortgage has a variable interest rate. These mortgages are most commonly in place for 5, 7, or 10 years. If you’re planning to sell or remortgage your house before the introductory period is over, this type of loan likely makes more financial sense.
An appraisal is the estimated value of the home you want to buy, based on other similar homes in the area. The property’s value is also factored in. This is to ensure the value of the house outweighs the loan amount requested.
A buyer’s agent is the real estate agent working on behalf of the potential homebuyers.
Buying a house is no small task, and in closing the deal, there come additional costs. Attorney’s fees, credit report fees, document preparation and recording fees, and appraisal fees are all examples of fees that can come with the finalization of a property sale.
Like an adjustable-rate mortgage, a fixed-rate mortgage is the other most commonly used option regarding loans. Generally, this kind of loan makes more sense if the homeowners are planning to own the house longer than five years. These conventional loans come with a predetermined interest rate, and duration is traditionally 30 years. Depending on the buyer, though, they can also be issues for 15 years, ten years, or another length of time.
A listing refers to the description of the home or property for sale, and are sometimes used by real estate agents about the house itself. The listing, digital or printed, includes details about the house and property, like acreage, number of bedrooms and bathrooms, and price.
An offer refers to a formal request to purchase a house. Once the seller accepts the offer or counteroffer, this becomes a legally binding sales contract.
The seller’s agent is the real estate who is representing the seller of a home or property. This agent markets and negotiates for their client, as well.
Title insurance is often required by mortgage lenders, to ensure that the home seller had the legal rights to the property title and that there are no outstanding debts on the house, like an unpaid contractor. The insurance protects the new buyer against any unknown debts.