Home Buyers Vs. Real Estate

1843 Words8 Pages
In the United States, the percentage of first time home buyers versus second or third time home buyers is 38%. The majority of these buyers are completely unaware of what is to come until they are knee deep into the transaction and are too afraid to ask questions or cannot take a step back. Though research can help them understand a few more real estate terms, a good real estate agent is definitely what is needed to survive a long real estate transaction and understand the closing of it. Home buyers need to be aware of the following key points required to complete and close a real estate transaction: ease of obtaining a mortgage, understanding the term “title” and closing costs expectation. A mortgage is simply the loan which you receive…show more content…
Depending on the buyer’s situation, the loan could be any of the previously mentioned. In other words, if a person has served their country they are able to get a VA loan over a conventional loan due to their service. The biggest advantage of a mortgage loan is being able to finally become a homeowner and pay off the debt in 15 to 30 years. Unfortunately, for many people buying a home has proved to be the wrong thing to do. Because losses in jobs cannot be foretold, some buyers end up having their homes foreclosed and their credit scores ruined. Mortgage loans are not meant to be taken lightly due to the high amount of money buyers are borrowing for the bank to pay off their home. In some cases, this is the biggest debt a buyer ends up accumulating over the years. Once a buyer completes the mortgage loan transaction, he is still not a homeowner. The beginning stage of a homeowner is when the buyer receives and signs the “title”. The Title is the transfer of the rights to the real property. This is a highly important aspect in the home buying business to the buyer because many things can go wrong. If the buyer decides not to purchase title insurance for their own protection, they could be opening themselves up to potential risks. These risks can be as little as an incorrect signature to a false or forged title document, which in turn would make someone else the legal owner of the property. The buyer wants to be sure the title they are
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