Prepayment penalty: A fee imposed on a borrower who pays off a loan (usually a mortgage) before its due date. In the simplest terms possible, interest is what you pay a lender to borrow money. There may be terms to the agreement, such as no major changes to the finances before the mortgage is obtained. Pre-approval – A pre-approval means the lender has agreed to loan a specific amount of money. For a more lighthearted look at real estate ad language, see What "As Is" and Other Real Estate Marketing Terms Really Mean. Appraisal – An appraisal is done to determine the home’s value and is often required by the mortgage lender. Or the seller might include a contingency asking for proof that the buyer is financially able to close the deal or for closing to be held off until the seller successfully finds another house to buy. The attorney listings on this site are paid attorney advertising. Buying a home shouldn’t be rocket science. Private mortgage insurance: Insurance that reimburses a mortgage lender if the buyer defaults on the loan and the foreclosure sale price is less than the amount owed the lender (the mortgage plus the costs of the sale). You just bought a home. I heard Fellowship Home on the radio and I wasn’t expecting they would be able to help me lower my rate because my current bank couldn’t do anything. I didn’t have great credit and had been getting the run around from banks when I had tried to lower the rate of my mortgage. There are a few terms to understand when initially looking into home mortgages. Contingency: A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a specific event, usually by specific dates leading up to the closing. There are ways to improve one's score. Nonrecurring closing costs: Those costs of closing a home purchase that need to be paid only once—such as the appraisal fee, title insurance, and transfer taxes. You just bought a home. Closing Disclosure – The closing disclosure is a form provided by the lender before the closing. However, there’s some home buying terminology that you should know before you start. For many, the terminology used by estate agents and mortgage lenders can be confusing, especially if you are new to the property market. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. For example, on a $150,000 home, you might put $15,000 down, get a bank loan for $115,000, and get a seller take back for $20,000. This shows sellers that you can afford to purchase the home, and obtaining a pre-approval can make it easier to go through the remaining process. A homeowners' association typically manages the common areas and oversees the covenants, conditions, and restrictions (CC&Rs) that apply to the property. Buying a home shouldn’t be rocket science. Share on Facebook Share. Disclosure: The making known of a fact that had previously been hidden; a revelation. … Continue reading "Home Buying Terminology: A Cheat Sheet" Home Buying Terminology Here are some home-buying terms that are good to get familiar with in alphabetical order. Buying or selling a property is a huge life event. The homeowners' association is also responsible for enforcing any covenants, conditions, and restrictions (CC&Rs) that apply to the property. Our experience with FHL was exceptional, from our initial meeting to the actual closing. Mixed-use zones are also used. Real estate broker: A real estate professional licensed to negotiate the purchase and sale of real estate for a commission or fee. Ultimately he made sure in the end I was happy with the outcome and I truly appreciated that. The legal significance of a counteroffer is that it completely voids the original offer. In many states, a home seller must disclose material physical and other defects in the house within his or her knowledge, such as a leaky roof or potential flooding problem; and, in all states, by federal law, sellers must disclose the presence of lead-based paint hazards in buildings constructed before 1978. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Zoning ordinances control the size, location, and use of buildings within these different areas and have a profound effect on traffic, health, and livability. Earnest money deposit (EMD): A partial payment (deposit) demonstrating commitment in a contractual relationship, and commonly made in real estate transactions at the time of making the purchase offer. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Closing Costs – Various costs will need to be paid at the closing. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. We want to hear from you and do everything we can to be of assistance to you! Escrow instructions: Written instructions, signed by a buyer and seller, telling an escrow agent what needs to happen before the deal closes. You just bought a home. In some states, the information on this website may be considered a lawyer referral service. This short guide offers you a great start toward getting comfortable with builder and real estate terminology, ensuring that you're 100 percent clear on everything related to the momentous occasion of buying your first home. Telephone provider charges may apply. Credit report. Common Home Buying Terms Explained When purchasing a home , buyers must navigate a process that entails a host of terms that may not be familiar to most. Buying a Lovell Home. 469-294-3399. Simply amazing! I was waiting for something to go wrong with the process because of my past experiences with mortgage companies but they did everything they said they would do. Our Accredited Buyer’s Representatives understand your perspective and are committed to helping you achieve your goals. They help determine the fair market value of the home to see if you’re getting a good deal or if the seller is asking for too much. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! There are many terms to understand before the closing, so you’re prepared for it. It’s important for this to be as low as possible to help you save money in the long run on the cost of having a mortgage. We’re explaining the essential terminology that you need to know if you are buying or selling a home; If you don’t know what they’re saying, you could put yourself at risk of a bad deal or an unfortunate misunderstanding that can cause endless trouble for closing the deal. Home > Blog > Home Buying Terminology: A Cheat Sheet. Your home or the property you wish to sell or buy. Acceptance: Agreeing to the terms of an offer, thereby creating a contract. Home Buying Glossary. In some states, this takes the form of a full contract, which the seller would need only sign to put the wheels into motion toward the closing. Annual Percentage Rate – The APR for a loan is the interest rate paid on the loan. These associations collect monthly dues and take on issues such as garden, pool, and fence maintenance, noise abatement, snow removal, parking area upkeep, repairs, and dues. In such situations, if you can't come up with additional down payment money or a better appraisal, or the seller won't lower the price, the deals might fall through. Consent may be revoked at any time and is not required for service. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. * = Required Field I hereby give consent to be contacted by Fellowship Home Loans or its agents at the number provided regardless of any Do-Not-Call (DNC) list status of such number. Banks and mortgage lenders are among those who use the information to screen applicants. This can include fees for an appraisal, title fees, and more. Also sometimes called a title agent. Fellowship Home and Fellowship Home Loans © 2018 All rights reserved. A written account of a consumer's credit history prepared by a credit reporting agency. Pre-qualification – A pre-qualification simply states that a lender is estimating how much they will offer for a mortgage. These can vary but typically include things like the house passing the inspection. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Legal Fees Paid. Appraisal: A determination of the value of something, such as jewelry, stock, or, in this case, the house you plan to buy. September 1, 2018 Marlo Wells Blog Home. Home-Equity Loan. Most agents are completely dependent upon commissions from sellers for their income. Everyone uses it from your real estate agent to your bank loan manager and the home seller. As soon as the seller signs on to your purchase offer, you're in contract for the sale of the house, and neither of you can back out without facing consequences—in your case, likely losing your earnest money deposit and, in the seller's case, a potential lawsuit. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Homeowners' association: An organization made up of neighbors concerned with managing the common areas of a subdivision or condominium complex. A professional appraiser—who should be a qualified, disinterested specialist in real estate appraisals, with expertise in the local geographic area—makes an estimate by examining the property, looking at the initial purchase price, and comparing it with recent sales of similar property. Help to Buy Schemes. If you Can Afford To Rent-You Can Afford To Buy! Annual percentage rate (APR): A yearly interest rate that includes upfront fees and costs paid to acquire the loan, calculated by taking the average compound interest rate over the term of the loan. Appreciation: An increase in the value or worth of an asset or piece of property that's caused by external economic factors occurring over time, rather than by the owner having made improvements or additions. I was shocked when they said they could do the loan AND pay off some of my credit cards as well. My sister had refinanced with Mike and Brian so I gave them a call when I was looking to purchase my first home. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Debt to Income Ratio – One of the things a lender will look at is the DTI, or debt to income ratio. Loan to Value Ratio – The LTV compares the amount of the mortgage and the appraised value of the home to determine the interest rate. Partial financing provided by the seller. Members typically pay monthly association dues. Buying a home shouldn’t be rocket science. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. June 26, 2019 | Posted by: Holly Cochrane. Numerical calculation that creditors use to evaluate the creditworthiness of someone applying for credit, such as a mortgage. The term is commonly used in the context of real estate. Fellowship Home is authorized to conduct business in AL, CA, CO, CT, DC, DE, FL, GA, IN, MA, ME, MI, MT, NC, OR, PA, TN, TX and WA. Our goal is to lean on our values to deliver the American Dream to as many wonderful people as possible. Buying a home shouldn’t be rocket science. Home Buying Terminology: A Cheat Sheet. Finding out the amount that can be borrowed and spent to purchase a home is crucial. Home Buying Terminology . Probably the most basic home buying term on this list, interest rates are fundamental to all forms of lending. Assisted Move. You just bought a home. The mortgage process can be overwhelming but having the Holly Cochrane Mortgage Team on your side can help to reduce your stress. Depending on the terms of the ARM, the interest rate could go up or down during the time you have the mortgage.
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