Real Estate Terms Every First Time Buyer Needs to Know
So, you’re ready to buy your first house. Little did you know, there’s a whole new language you need to learn during the process! Real estate has many different terms, phrases, and acronyms that every first-time buyer needs to familiarize themselves with before they jump into the market.
Don’t worry, the experts here at The Degnan Group are here to explain the most common real estate terms that every first time-buyer needs to know.
Escrow - Even though this word may sound more like a fancy French dish than a real estate term, escrow is actually very simple. Basically, it’s a third party (like a bank or law firm) that holds the agreed upon money for the sale.
Example: If you’re in
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There are many steps to take between finding one you like and moving into it, and paying the closing costs are one of them. Simply put, closing a home is when you finalize the sale, and the closing costs are all the extra fees associated with it.
Example: These usually include the down payment, fees for attorneys, commission for the real estate agent, and any other small costs like title insurance, appraisal fees, homeowners insurance costs, and more. Make sure you keep these in mind throughout the sale, so you don’t get blindsided by extra costs at the end!
Down payment - All your friends are saving for one, and your parents are hassling you about what they think is enough for one. But, what exactly is a down payment on a home? It’s the amount of money you pay upfront for the purchase. Then, the rest of the cost is covered by a loan.
Example: Down payments are calculated by percentages, and it’s best to be able to pay at least 20% of the total home cost as a down payment when you purchase. That means, if you want a $200,000 home, you need to have a $40,000 down payment saved. 20% is just a starting point though. A larger down payment means a smaller loan, which can lower mortgage costs, decrease the amount of interest paid, and save you money in the long run.
Equity - This word is thrown around constantly in the real estate world, so it’s important that you understand what it means. The equity of
* Expenses such as legal, title, and mortgage origination fees are not included in the closing costs because the mortgage is transferred from the previous owner and therefore, these costs have been incurred.
Selling your home will involve a lot of paperwork and figuring it all out isn't easy. Above and beyond the contracts, inspections and appraisals, you're going to need to produce paperwork involving the complete history of the home:
A home is a valuable asset that every person desires to own. Purchasing a house of your dreams brings joy and satisfaction to your family. However, for first-time homebuyers, the process of buying a new home can be challenging and complicated. First-time homebuyers should approach this decision with confidence. Before making this purchase, you need to prepare yourself both financially and emotionally to make an informed decision. Below are crucial tips for purchasing your first home that will make the buying process smooth and manageable.
Another important thing a first-time homebuyer needs to know is the role that down payments when it comes to buying a house. The amount of down payment determines your mortgage payments. The higher
The term real estate has been much in use in the recent past. It is a legal term that mainly deals with land. It incorporates land along with all that is additional to the land such as fences, buildings, roads, trees, wells and all other site improvements that are made for the betterment of the land. Generally all these are the fixed and cannot be moved about from one place to another.
The home buying process can be a very confusing time. First finding a home and finding one within your price range, Then finding one to your liking, and finally settling the agreement and terms to buy the house. There are many terms used within the time frame whether you 're buying a house and or just looking. In this paper you will learn that most of every term and a short and brief description of all of them.
Buying your first home is no small task. It can be complicated and confusing and there's no shame in that! It's a complicated and confusing process, but luckily, there are some hard and fast guidelines you can follow to make buying your first home a much smoother and less frightening experience.
Growing up, my curiosity began to develop at a young age. Educational television was a factor in this development. One example of the many educational television programs that I watched at a young age covered diverse lifestyles of assorted tribes. As I grew older, the programs led me to question the tribal communities access to basic human rights and how the community was able to preserve their traditional values and cultural norms. Later on in life, I wanted to seek the knowledge about the questions I had as a young adult. This led me to pursue a Bachelor’s degree in Sociology at Murray State University. I was able to gain knowledge to better answer the questions I had. As I absorbed the research, I took an interest in the treatment of women,
The economic decline has possible home buyers, especially first time home buyers, scared to invest anything into the housing market. With the fear of another depression in the back of everyone's minds, some businesses are attempting to clarify the pros of home ownership.
At Sage Realty, we know that buying a home comes with high costs, particularly for the first time home buyer. The real estate agents in our office want to help reduce the expenses of owning a new home with these six tips.
Real estate is a legal term that includes land along with anything permanently affixed to the land such as buildings, fences and things attached to the buildings, such as plumbing, heating, and light fixtures. The properties not affixed are regarded as personal property.
Owning a house has become more important than simply having a place to live, or making a sound real estate investment in our society. Buying a house has become an integral part of the American dream. No matter if you are male or female, young or old, rich or poor, what culture or country you are from, everyone has a dream about it; in other words, every one of us wants to own a place that we can live in and create memories in that will last a life time. For a first-time homebuyer, that dream can quickly turn into a nightmare. The whole home buying process can quickly overwhelm the average individual. You’re entering into what could be the biggest purchase of your life with no experience to fall back on. The good news is a little preparation can go a long way and help you approach this decision with confidence. Luckily for you, I have taken the liberty of putting together a guide for the first-time homebuyer. Throughout this guide I will take you step by step through the daunting process of buying a home.
Buying or selling a house or an apartment is one of the biggest decisions of a person’s life. And when selling or establishing a price for real estate, people seek out real estate agents to do the dirty work. A real estate agent has to convince a prospective homeowner that he or she is trustworthy and knowledgeable. In many ways, the agent acts as a counselor to individuals and families about to embark on a huge commitment. Real estate agents have a thorough knowledge or real estate market in their community. They
Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house. When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000. The more money you can put into your down payment, the lower your mortgage payments will be. Generally most banks will want a 10% to 20% payment to put down towards your loan. The more money you can put into your down payment, the lower your mortgage payments will be.
Potential home buyers often discover that while they'll have no trouble making their monthly mortgage payments, they nonetheless can't buy a home because they lack the funds to make the necessary down payment and closing costs. Fortunately, a number of solutions to this problem exist, one of the most common being: down payment assistance programs.