Are you about to embark on one of the most important journeys in your life? “First Time Homebuyer”? You may not know all these terms, but don’t worry-we’ve got you covered! Here’s a quick #cheatsheet on some of the most important home buying terms. Check out our social post for a quicker visual aide!
OFFER
When a buyers offer is accepted by the seller, a Purchase Agreement is created, This legal document is used to outline a potential real estate transaction between two parties.
APPRAISAL
A review of the property in which its fair market value is determined, based on current real estate market conditions. The appraised value is used by a bank to determine the lending limit on a given property. A seller may also have a property appraised to determine the offering price during a sale.
CLOSING COST
Fees paid at the end of the transaction either by seller, buyer or both. Some examples of closing costs are title insurance, attorney fees, appraisal fees, recording fees and taxes.
HOME INSPECTION
An examination of the property’s condition which provides the buyer an opportunity to identify any major issues with a home before closing.
ESCROW
A state where consideration, benefits, legal rights, document, or a sum of money is held by one person in trust for another, for the purpose of assuring performance under an agreement. Normally in a residential real estate sale, the attorney for the seller is the escrow agent for the deposit money securing the deal until closing. The money is held in an escrow account.
TITLE
The title of a property is the evidence or documentation that an owner is in lawful possession of the property, such as a property deed.
TITLE INSURANCE
Title insurance is an insurance policy protecting the insured from financial loss caused by a defect or question about the title to real property.
TITLE SEARCH
Title search is a process that examines local public records, laws and related court decisions to determine if any other parties have valid claims against the subject property (such as past due taxes, judgments or mechanics’ liens). It also discloses past and current facts about the subject property’s ownership.