If you are going to be buying or selling a home then you should get familiar with some of the real estate terms and lingo that you may hear quite a bit of, so you will have an easier time following those conversations going on around you. Here are some of the terms you may hear that you should be aware of the full meaning of:
First time buyer: This one may seem obvious. However, you may be surprised to learn that anyone who hasn't owned a home for at least three years will also be considered a first-time buyer and therefore will be able to take advantage of some of the same loans as someone who's really buying their very first home.
Preapproval: Preapproval is the process for going through a light approval process with a lender so they can give you proof that you are preapproved. This helps realtors, sellers take you more serious when you want to see their house. However, it is not a guaranteed approval, but will let you have a better idea of the loan amount you may be approved for.
Escrow: Escrow is when the house is in the process of going from the seller to the buyer. This is when everything is gone over with a fine-tooth comb to make sure there's nothing wrong with the transaction on either side. Once escrow officially closes, the house will immediately become the buyers.
Earnest deposit: An earnest deposit is a relatively small deposit the buyer will give the seller when their offer is accepted. This deposit ensures the buyer isn't going to pull out and change their mind after the seller has pulled the house off the market. If the buyer does change their mind, the seller keeps the money. If everything goes all the way through escrow fine, the deposit is usually put toward the purchase price of the home.
Co-borrower: A co-borrower is another person who will also be on the title and be another person in on the purchase of the house.
Contingency: A contingency is a specific criteria which must be met in order for a contract to be considered legally binding. One example of a possible contingency could include the specification that the contract isn't binding until the home has been given a satisfactory report regarding a home inspection.
Credit score: A credit score is a numerical value of the current standing of a person's credit worthiness. The higher the score, the better position they will be in with regards to qualifying for a home loan as long as they also meet the other necessary criteria.Share
24 August 2017
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.