Buying a Home: Do You Know the Lingo?
Breaking down real estate terms. Every industry has its own language, and real estate is no exception. It’s important to know what these real estate terms mean, so you understand the concepts and feel confident in buying a home in Chicago.
Here is a list of some of the most common terms used in the homebuying process.
Appraisal – A professional analysis used to estimate the value of the home. A necessary step in validating the home’s worth to you and your lender to secure financing. Here’s everything you need to know about appraisals.
Closing Costs – The fees required to complete the real estate transaction. Paid at closing, they include points, taxes, title insurance, financing costs, and items that must be prepaid or escrowed. Ask your lender for a complete list of closing cost items.
Credit Score – A number ranging from 300-850 that is based on an analysis of your credit history. Helps lenders determine the likelihood that you’ll repay future debts.
Down Payment – Down payments are typically 3-20% of the purchase price of the home. Some 0% down programs are also available. Ask your lender for more information.
Mortgage Rate – The interest rate you pay to borrow money to buy your home. The lower the rate, the better.
Pre-Approval Letter – A letter from a lender indicating you qualify for a mortgage of a specific amount.
Real Estate Professional – An individual who provides services in buying and selling homes. Real estate professionals are there to help you through the confusing paperwork, find your dream home, negotiate any of the details that come up, and help you know exactly what’s going on in the housing market.
You’ll feel more confident understanding the home buying process and you’ll find the right match for you which will save you time and make the process less stressful. Let’s get started! Contact Maureen Moran at @properties. 312-953-7811 or fill out the form below.