Buying a home can be pretty intimidating, even if the buyer has been through the process a few times. Since most folks do it only a few times in a lifetime, it’s unlikely they’ll remember all the terms that their lender, the seller or even their Realtor might throw around during the process. To point a new or experienced in the right direction, here’s a short list of some of the most common but least understood terms a buyer will hear during the home-buying process.
Appraisal – A professional analysis used to estimate the value of a home. An appraisal is typically done by a licensed professional. It is a necessary and essential step for validating a home’s value to the buyer and to the lender who is offering to finance.
Closing Costs – The costs to complete a real estate transaction, and paid at closing. The closing costs may include points, which one point equals one percent of the loan, which is prepaid interest. Costs may also include – real estate taxes, title insurance, miscellaneous financing costs, and items that are required to be prepaid or escrowed. A Keller Williams The Trembley Group Real Estate Professional can give a close estimate of these costs. The buyer’s lender will provide an accurate and complete list of the expenses before closing.
Credit Score – A number ranging from 300 to 850, which is determined based on an analysis of a mortgage borrower’s credit history. A credit score helps the lender determine the likelihood that the borrower will repay the mortgage debt.
Down Payment – Down payments typically range from 3% to 20 % of a home’s purchase price. There are some 0% down programs available. Meeting with a lender early in the home buying process will determine the best loan for a particular home buyer and the buyer’s specific situation.
Mortgage Interest Rate – The interest a home buyer pays to borrow money to buy a home. It is the cost of the borrower’s mortgage – the lower the rate, the better. The mortgage interest rate affects the monthly mortgage payment and can be lowered by making a larger down payment or by paying extra discount points (see Closing Costs).
Pre-approval Letter – A letter from a mortgage lender indicating the buyer qualifies for a mortgage of a specific amount. A pre-approval letter shows the seller and the seller’s real estate agent that a buyer is a serious player when they make an offer.
Real Estate Professional – An individual who provides a myriad of services when buying and selling a home. A Keller Williams The Trembley Group Real Estate Professional is always available to help their clients through confusing paperwork, find their dream home, negotiate any and all of the details that arise, and understand exactly what’s going on in the housing market.
No advisor is more important to a seamless real estate transaction than a Keller Williams The Trembley Group Real Estate Professional. They guide their clients through every aspect of the real estate transaction, always putting their client’s family’s needs first.
At Keller Williams The Trembley Group, we pride ourselves on being the experts at more than just selling real estate. We are local residents, some of us have been here for a lifetime. The rest of us will be here until the end of time. We love living, working, and playing in the diverse backyard of Coastal Carolina, and look forward to helping you live and love your dreams soon too. Please reach out to us by phone or email for personalized service and one-on-one advice.