Simply for New Home Buyers
If you're a first time homebuyer, here are some things that will be helpful to you as you embark on this new chapter of your life as a homeowner!
Simply 10 Real Estate Terms you should know…
Principle, interest, taxes and insurance (PITI) are the four components of a monthly mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing the money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance.
Comparative Market Analysis. A CMA is a report that shows prices of properties that are comparable to a
subject property and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.
3. Closing Costs
The entire package of miscellaneous expenses paid by the buyer and seller when the transaction closes.
These costs include the brokerage commission, mortgage-related fees, escrow or attorney's charges, recording fees, title insurance, etc. Closing costs generally are paid through escrow.
Provision of an agreement that keeps the agreement from being fully legally binding until a certain condition
is met. One common example is a buyer's contractual right to obtain a professional home inspection before purchasing the home.
5. Title Insurance
An insurance policy that protects a lender's or owner's interest in real property from assorted types of unexpected or fraudulent claims of ownership. It's customary for the buyer to pay for the lender's title insurance policy.
6. Due Dilligence
Research the property and do your homework so you know if the property will suit your needs.
7. Earnest Money
A deposit made by the potential homebuyer to show that he or she is serious about buying the house.
8. Hazard Homeowner's Insurance
9. Binding Agreement
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
10. Lease/Purchase Agreement
A lease with an option to purchase the property.