Examples Of Common Terms Used In The Real Estate Industry

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.

payments on a simple house. This goes back to trust between the lender and the borrower. The

5. Manufactured Homes accounts for these transactions as sales in accordance with Statement of Financial Accounting Standards No. 77, “Reporting by Transferors for Transfers of Receivables with Recourse”, and recognizes finance participation income equal to the difference between the contractual interest rates of the instalment contracts and the agreed upon rates to the financial institutions; the portion retained by the financial institutions is discounted for estimated time of collection and carried at its

Foreclosure has become an outbreak affecting the entire United States of America. Realtytrac just reported in the month of April 2011 that one in every 593 housing units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida, Michigan and Nevada continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a casualty to a foreclosure, short sale or even bankruptcy was collateral for the lender holding the promissory note. The consequences tend to come at a cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the

These contracts are commonly used where a buyer wants to purchase a home, or building

The first important thing you should know is that your credit score plays a hug role in getting mortgage. All homebuyers must have a minimum credit score of 620 to qualify for mortgage loan. Your credit score also determines the banks risk factor. Banks and lenders see individuals with good credit score as low risk factors. Having a good credit score will often give you more options in lenders.

Many boomerang buyers who have worked hard to rebuild their credit score over the last few years have just taken out an FHA loan. An FHA loan has a three-year waiting period, currently a 3.5-4.0% down payment, and a minimum credit score requirement of 640, as well as monthly mortgage insurance payments.A considerable amount of boomerang buyers and even first time buyers have just taken out an FHA loan, intending to refinance to a conventional loan in the future. A conventional loan essentially a loan not issued by the government. First of all, many people do this because if they werea victim of foreclosure they would be unable to take out a conventional loan for seven years. Many people choose to refinance because it offers a change in loan structure and lower monthly payments as well. Conventional loans also offer more in

Two of the most attractive benefits are that the loan recipient is normally not required to provide a down payment and there is no requirement concerning private mortgage insurance. The VA rules also provide a limit for the amount you can be charged for closing cost and they may be paid by the party selling the home. You also will not face any penalty if you exercise your right to prepay your mortgage.

The two can be different amounts. By working with the lender you can establish the amount you want to pay and value that equates to at today’s rates. This way you wont waste time looking at homes that are outside your price range.

Banks, along with other lenders nationwide, have made things tougher for folks who want to buy a house. The requirements for conventional mortgage loans today make it extremely difficult for someone who doesn't have stellar credit to find a loan. FHA home loans are there for people with lower credit scores, yet the guidelines for such loans are a lot stricter than the VA home loan standards.

* 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.

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.

Closing is the final step required to complete a real estate transaction. Depending on the location and type of property certain guidelines or requirements may apply, however, there are many common steps within the process. This paper will present the following terms and their relation to closing: mortgage, escrow, the preliminary report and inspection. Depending on the state guidelines, a closing can happen at a title company with an escrow officer or at an attorney’s office. Once a seller has officially accepted an offer they will agree on a closing date with the buyer. At the time of closing, property ownership is transferred to the buyer.

Analysis: But sometimes buying a house isn’t the best choice. It’s a long-term commitment that requires the homeowner to have a stable and secure job. If you default on your mortgage, for example being late on your payments or even missing payments the mortgage lender can take your home away. Then the lender can sell your home resulting as a foreclosure. Foreclosure also affects your credit making it harder or almost impossible to purchase a house in the future.

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.