Pre-Approval Letter:Before you apply for a home loan or start your real estate search, it's a good idea to meet with your mortgage lender. They will check out your credit and financial situation to see how much you can be pre-approved for. This can give you AND your real estate agent a good idea of what price range in which you should be looking for a home.
Listing Agent:The real estate agent who is assisting the home seller is known as the listing agent. This is the person or company who actually lists the home for sale and helps to promote the property in order to find a buyer.
Buying Agent:The agent who helps the home buyer through the real estate transaction is the buying or buyers agent. From showing different properties to helping with negotiations, a buying agent works for the home buyers, during the transaction.
Contingency:Any condition or requirement of the home stated during the offer is known as a contingency. The sale of many homes is contingent on the home inspection. Sometimes a home can even be contingent of the buyer selling their previous home. There are a number of contingencies, or required happenings for a home sale to go through.
Appraisal:A mortgage lender will likely require an appraisal of the home you intend to purchase. This is when an appraiser will visit the home and take a look at similar homes in the area to decide upon an estimated home value. It can give your mortgage company a good idea of the worth of the home that they will be lending money toward.
Closing Cost:Any fees that go into processing your home sale is known as closing costs. This represents the amount of money required to complete the transaction and is often due the day of closing. Tax, loan-processing fees, and title insurance are often wrapped into closing costs.
Mortgage Rate:A mortgage rate is the rate of interest charged by your lender. The rate can come in different forms - fixed or adjustable. A fixed rate is decided at the beginning of a home loan and will stay consistent throughout the time of homeownership. An adjustable rate has variable interest rate time periods, usually 5, 7, or 10 years. At the point of adjustment, your rate can change - depending on a number of factors.
Escrow:Escrow is a monetary account created at the beginning of your real estate transaction and held with a third party until the fulfillment of a condition. Many times taxes and insurance premiums are paid with this money you put down. An escrow account can also help you appear to be a more serious buyer to your real estate agent, mortgage lender, and home sellers.
Home Inspection:During a home inspection a professional will come to the property involved in the transaction and look around the home. The interior and exterior of a home will be closely inspected to ensure the property is in safe condition for purchase.
Amortization Schedule:A chart that shows how much of each payment is applied toward the principal and interest, over the lifetime of the loan. This also gives you a good idea of the decrease of the loan balance over time.
Title Insurance:Insurance that protects the lender or the buyer is known as title insurance. This can help protect either party from a loss that arises from disputes over ownership of the property being sold.
Deed:A legal document that conveys the title to the property being bought is known as a deed. This is proof of ownership, when a home transfers names.
Now that you've hopefully learned a little more about these common real estate terms, you are better prepared to jump in! If you're looking to buy property or sell your home at the Lake of the Ozarks, our team can help. Eagle's Nest Realty has a wide range of experience to help you meet your real estate goals. Give us a call today at 573-374-0769 to schedule a consultation with one of our real estate agents at the Lake of the Ozarks.
Call (573) 374-0769 to schedule a showing today!