5 Terms You Should Know Before You Buy

Dated: 01/15/2018

Views: 269

5 Terms You Should Know Before You Buy

To become a homeowner is very exciting. However, if you are not familiar with the terms used during this process, the experience can be make it difficult and frustrating. Here are 5 terms commonly used in Real Estate that can help you improve your experience.


Escrow
A financial arrangement where a third party (usually the title company)  holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met as overseen by the escrow company.

Appraisal
An appraisal is an unbiased professional opinion of a home's value. Appraisals are almost always used in purchase and sale transactions. In a purchase and sale transaction, an appraisal is used to determine whether the home's contract price is appropriate given the home's condition, location, and features. It assures the lender that it isn't handing the borrower more money than the home is worth since lenders want to make sure that homeowners are not over-borrowing for a property because the home serves as collateral for the mortgage.


Title insurance
Title insurance is an insurance policy that covers the loss of ownership interest in a property due to legal defects and is required if the property is under mortgage. The most common type of title insurance is a lender's title insurance, which is paid for by the borrower but protects only the lender. However, owner's title insurance can be taken out as a separate policy and is paid for by the seller to protect the buyer's equity in the property.


Contingencies

A contingency is an event or condition that must occur before the deal can close. Typically, a buyer will reserve the right to recover her earnest money if the contingency is not satisfied. For example, if a buyer submits an offer that includes an inspection contingency, the buyer has a specific period of time during which the buyer can inspect the home and, if it is unsatisfactory, rescind the offer. So long as the buyer complied with the terms of the contingency, she can usually recover her earnest money.

Closing Costs
Closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. Closing is the point in time when the title of the property is transferred from the seller to the buyer. Closing costs are incurred by either the buyer or seller.



As always, for questions or concerns, reach out to your agent for further info!
Have a great day!


1 comments in this topic

  • Posted by Cristinazambranoyepes
    02/05/2018
    Buenas tardes\r\nQueremos comprar Casa, ojala en kissemee, osceola, ou Orlando area. \r\n\r\nQueremos saber si somos primeros compradores tenemos alguna ayuda del gobierno.\r\n\r\nMuchas Gracias\r\nSiempre en busca de nuestra casa propia. \r\nCristina Zambrano\r\n7863623043

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