The principal is the amount of money you borrowed from a lender, excluding the interest.Ī licensed professional who helps sellers or buyers complete real estate transactions.Ī lease or contract might include "right of first refusal" to note that an individual has the right to put an offer on a property before it is listed on the market by a seller.Īlso known as a junior lien, a second mortgage is an additional loan taken on the same property. The pre-approval process involves a potential lender or bank reviewing an individual's finances, including their income, assets, and credit history, to determine how much money can likely be borrowed.īanks offer customers who have proven to be creditworthy their best, or prime, interest rate. This is the balance of the mortgage loan before interest is taken into account. When interest on a mortgage loan has not been paid to the lender, it's added to the loan balance. This form of insurance can protect a lender in the event that a homeowner defaults on their mortgage. When a group of homeowners in a community, such as a condo, join in paying fees that cover the maintenance of the entire property.įinancial protection that helps with covering costs associated with repairs of a property or even replacement if necessary.Ī lender is a financial institution or person that loans money to another party for the purpose of purchasing real estate.Ī mortgage lender can place a lien on a property if the homeowner is not up-to-date on payments.Ī mortgage is a loan that is used to purchase a home or other form of real estate.Ī mortgage banker provides mortgage loans.Ī mortgage broker acts as the middleman between mortgage borrowers and potential lenders. This refers to a homeowner putting their property up for sale without assistance from a real estate agent or broker.Ī property goes into foreclosure when the homeowner misses mortgage payments and the lender tries to recover the balance of a loan.Īlso referred to as a HELOC, this is a second mortgage that allows a homeowner to borrow money against their home's value.Ī home inspection involves the evaluation of a property's condition, including electrical work, sewage, and plumbing before the closing. This mortgage has the same interest rate for the term of the loan. The amount a property would sell for in a competitive market, or when a seller and buyer can agree on the price of a property.Ī Federal Housing Administration mortgage loan is backed by the government and is typically reserved for buyers with a low credit score or significant amount of debt. This federal law determines how a consumer's credit information can be used. This is calculated by taking the difference between the amount owed to a lender and the market value of a property.ĭuring the home buying process, your money will be placed "in escrow" and is protected by a third party until the real estate transaction is closed.Īn exclusive listing is when a seller commits to working with one specific broker and a designated agent on the sale of a property. This can typically range from 5 - 20% of the home's cost. The down payment is the amount of money a buyer has saved in order to purchase a property. The deed refers to the legal document that transfers ownership of a property from a seller to a buyer.ĭefault refers to when a homeowner fails to make several mortgage payments on time, according to the terms of the loan contract.ĭelinquency means a homeowner has failed to make a mortgage payment on time. Ideal for borrowers with strong credit, this type of loan is not backed by a government agency like the Federal Housing Administration (FHA). This is a short-term loan that covers the cost of building a property. This refers to 5 - 6% that a real estate agent makes at closing. The costs and fees that come along with the purchase of a property. The final step of a real estate transaction when a property is finally transferred from the seller to the buyer.
He or she can choose to work independently of a firm, real estate agents must work with licensed brokers. When a county, village, city, or town hires an assessor to determine the value of a property for tax purposes.Ī real estate broker is qualified to represent a seller or buyer. The increase in a property's value over time. The interest rate along with other fees that you can expect to pay when securing a mortgage loan.Īn approximation of a home's current value based on a range of factors such as the price of similar properties in the area. Repaying a debt over a set period of time. A document that is added to a real estate contract or purchase agreement.
0 kommentar(er)
