All the Real Estate Lingo You Need to Know
The process of buying your first home can be intimidating enough, until you realise there’s an entire language of terms you need to learn to fully understand the process and then things become even more daunting. From the different types of mortgages to the process of putting in an offer and then closing on a property, real estate brokers will toss around terms and phrases that may go right over your head. Fear not. We polled some experts and compiled a list of must-know lingo to help you navigate this intense but exciting process. Read on for an education.
The appraisal is the process of determining the value of a home. This is required by the lender and organised by its choice of an impartial professional appraiser. The results may not be the same amount as the selling price. If the value comes back lower, it could result in additional negotiations between the buyer and seller.
This is when the buyer, agent or lawyer, and the escrow agent (more on that later) meet with the seller and their representatives to finalise the purchase. This will incur fees known as closing costs which include attorney’s fees, a loan origination fee, and other charges totaling around six per cent of the house.
This is the responsibility of the buyer to take all necessary care before closing on the purchase. For example, it would include confirming the seller’s broker and attorney are legitimate and confirming there are no issues that have yet to be disclosed that would prevent the buyer from wanting to proceed with the purchase.
The process the loaner goes through to confirm if a borrower qualifies for a loan based on their credit history and current financial status as well as the amount of money a recipient qualifies to receive.
Still confused? Shop some helpful books on the topic below.
Are there any we missed? Share what real estate terms trip you up in the comments!
Opening Photo: Leigh Herzig