Leave a Message

Thank you for your message. We will be in touch with you shortly.

Key Terms Every Homebuyer Should Learn

Keeping Current Matters January 22, 2024

Buyer

Key Terms Every Homebuyer Should Learn

Affordability 

A measure of whether someone earns enough to qualify for a loan on a typical home based on the most recent price , income, and mortgage rate data. When home prices and mortgage rates are higher, it can impact affordability.

Appraisal 

A report highlighting the estimated value of the property completed by a qualified third party. Lenders rely on appraisals to validate a home's value and ensure they're not lending more than the home is worth.

Closing Costs 

The fees required to complete the real estate transaction. Paid at closing. Ask your lender for a complete list of closing close items, including points, taxes, title insurance, and more.

Credit Score

A number ranging from 300-850 that's based on an analysis of your credit history. This helps lenders determine the likelihood you'll repay future debts.

Down Payment 

Down payments are typically 3.5-20% of the purchase price of the home. Some 0% down programs are also available. Ask your lender for more information about what you may qualify for. 

Equity

The value of your home above the total amount of liens against your home. Many homeowners are realizing they have more equity than they thought and they're using it to move.

Inspection Contingency 

A provision in a contract requiring an inspection to be completed. This essential step gives you information on the home's condition and potential repairs.

Mortgage 

A loan using your home as collateral. It also may be used to indicate the amount of money you borrow, with interest, to purchase your house. The amount of your mortgage often is the purchase price of the home minus your down payment. 

Mortgage Rate 

The interest rate you pay to barrow money when buying a home. As mortgage rates fluctuate, consult a lender so you know how it can impact your monthly mortgage payment. 

Pre-Approval Letter

A letter from a lender that shows what they're willing to lend you for your home loan. This, plus an understanding of your savings, can help you decide on your target price range. 

 

Let's connect so you have an expert on your side to explain the homebuying process every step of the way.
 
Some Highlights
  • Buying a home is a big deal and can feel especially complicated if you don't know the terms used during the process.
  • If you want to become a homeowner this year, it's a good idea to learn these key housing terms and understand how they relate to the current housing market. That will help you feel confident when you buy a home.
  • Let’s connect so you can get expert help with any questions you have.

We are Your GPS to Success Let’s Get Started

We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today

Follow Us On Instagram