Are you buying a home? Do you know the language? Here is a list of the most commonly used terms when buying a home?
Appraisal: A professional analysis that estimates the value of your home. This is a necessary step in validating the home's worth to secure financing.
Closing costs: The cost to complete the real estate transaction. This cost is paid at closing. The list of closing costs includes: points, taxes, title insurance, financing costs, items that must be prepaid or escrowed. Your lender is able to go over a complete list of closing costs with you.
Credit Score: A value ranging from 300-850. This number is based on an analysis of your credit history. This number helps lenders to predict the likelihood of you repaying future debts.
Down Payment: Down Payments typically range from 3-20% of the purchase price of your home. Ask your lender and PorchLight agent for more information.
Mortgage Rate: The interest rate you pay to borrow the money to buy your home. The lower the rate, the better.
Pre-approval Letter: A letter from a lender stating the specific amount of a mortgage you qualify for.
Real Estate Professional: An individual who provides services in buying and selling homes. The PorchLight team will help you through confusing paperwork, find your dream home, negotiate tricky details, and help you understand the current housing market.
Buying a home can be a rather intimidating process, specifically for the first-time buyer. This list of some common terms should provide some confidence. The best way to ensure a pleasant, easy buying experience is to pick a knowledgeable real estate professional. Our agents at PorchLight will put you and your family first.