Before you head to meet your realtor, learn these important industry words so you can follow along without confusion during your meeting. Of course you can always ask your realtor what these words mean, but we are giving you a chance to know them first!
Adjustable Rate Mortgage (ARM) - A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.
Appraisal - A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.
Buyers Agent - The agent who represents the person that is buying the home.
Fixed Rate Mortgage - A mortgage in which the interest rate does not change during the entire term of the loan.
Listing Agent - The agent that represents the person who is selling the home.
Lender - A term which can refer to the institution making the loan or to the individual representing the firm. For example, loan officers are often referred to as “lenders."
Contingencies - A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not
binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.
Title Insurance - Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property.
Home Inspection - A home inspection is an objective visual examination of the physical structure and systems of a house, from the roof to the foundation. To avoid unexpected surprises
and difficulties, you’ll want to learn as much as you can about the newly constructed or existing house before you buy it.
Mortgage Insurance - Insurance that covers the lender against some of the losses incurred as a result of a default on a home loan.. Mortgage insurance is usually required in one form or
another on all loans that have a loan-to-value higher than eighty percent.