Real Estate Terms
A big part of getting comfortable with completing a real estate transaction is simply knowing what everyone is talking about throughout the process. There are many terms involved in this industry, so it’s worth reviewing the list below to quickly get up to speed on as many of them as possible.
Of course, another way to get your feet on the ground is to work with the Tate Realtors at Smith Marketing. Leaders for years in Greensboro real estate, Smith Marketing will guide you from start to finish and answer every question you have along the way. Take a moment today to reach out and learn more.
Appraisal
This is a review by a licensed appraiser that will assign a fair market value to a home based on things like the location, size of the home, its condition, and the overall market.
Closing Costs
When a real estate deal closes, there are a variety of costs associated with finishing the deal and formally transferring ownership from one party to another. Those costs include things like title insurance and loan origination fees.
Down Payment
This is the money that the buyer puts down at the close of the deal to partially fund the purchase. Most home purchases are made through a combination of a down payment and a mortgage to cover the rest of the price.
Equity
After owning a property for a while, it’s often the case that you will have some degree of equity in the home. The term equity simply refers to how much value the property has after you consider the loan that is outstanding on it.
Fixed-Rate Mortgage
A loan that has a fixed rate is assigned a specific interest rate at the time of closing and that rate will not change for the duration of the loan.
Pre-Approval
Buyers in the real estate market will often go through a pre-approval process to have their credit reviewed and determine how much they can afford to spend on a new house. While a pre-approval doesn’t guarantee final loan approval, it does help to give sellers confidence that the buyer is qualified to make a serious offer.
Home Inspection
It’s considered a good practice to have a home inspection included as part of the terms of making an offer on a home. The inspection will check out the condition of the property in detail to spot any issues that need to be addressed.
Short Sale
When a property goes into the foreclosure process, it may wind up becoming a short sale – meaning it is sold off by the bank for more than is owed on the loan.
Mortgage Insurance
When a home buyer is going to put down less than 20% of the purchase price of the home, mortgage insurance is generally required to protect the lender in case of a default.
As a respected Allen Tate team with countless successful transactions completed, you won’t do better than Smith Marketing whether you are buying or selling a home in the Greensboro area. This journey starts with a simple phone call, so pick up the phone now and you’ll be on your way.