First Time Home Buyer’s Vocab Cheat SheetJuly 18, 2017 catalysthometeam
Let’s be real, there are SO many confusing terms that come up when buying a home. Contingency Period, Earnest Money, Title… all the words. Knowing this jargon can seriously make your experience more comprehensive and enjoyable, so we have your back. Below is a list of buzz words to know to get your started off on the right foot.
An agreement between a buyer and a seller to purchase real estate. Also known as a sales contract.
Offer on a home as been accepted, but finalized sale is contingent upon certain criteria. Typically: Appraisal, home inspection, or mortgage approval fall under the contingency period.
Fees paid at the end of a transaction either by the buyer, the seller, or both. They include taxes, insurance, and other lender expenses.
Deposit made to a seller showing the buyer’s good faith in a transaction. Typically held in a trust or escrow account. When you are looking at homes, make sure to bring your checkbook if you find yourself wanting to write an offer for the home you see!
Examination of the property’s condition. Usually preformed be a qualified home inspector of your choice. We love using RIA Inspections and have great relationships with their inspectors to ensure that this process is smooth and reliable.
A bundle of rights in a piece of property. The title company will provide you with the preliminary title report for you to review before accepting the property.
Property and/or land valuation completed by an appraiser who determines the market value. This process can take 2-4+ weeks, depending on various circumstances.
Choose your home owner’s insurance and provide the information to your lender. Psst… Be sure to gather 3 or more quotes before choosing. Need help finding a great homeowner’s insurance company? We have a preferred vendor and would love to connect you!
We will schedule the closing as soon as we receive the OK for your lender. This is when you will be signing for the home. Depending on the circumstance, this process takes about one hour.
This is the breakdown of your monthly payment. PITI = Principle + Interest + Taxes + Insurance. When you are looking for a home loan, you need to make sure to consider all of the factors of what goes into a monthly payment. Your mortgage lender can give you a fee sheet to break down your monthly costs and let you know exactly how much you can afford.
Need help understanding more of this process? We would love to help you walk through the home buying or selling journey. We have tons of resources and vendors to help you along the way! 678.671.0202.
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