The real estate world involves an entirely new language! From the terms used such as commission, bidding war or escrow, this whole new realm of words make you feel as you need a new degree! Don’t worry, we’ve got you covered with this quick glossary of essential terms:Don’t worry, we’ve got you covered with this quick glossary of essential terms:
Appraisal: Determine a home’s value in the real estate market by using the credentials and expertise of a licensed professional.
Closing Costs: Additional finalizing costs of a property purchase (search as title insurance, loan origination fees, etc.).
Down Payment: This involves a way of payment which consequently a part of the purchase price is paid upfront, normally 3.5% to 20% of the full cost.
Equity: The market value is the price at which the property is sold, and represents the amount of the property that you still own (purchase price less mortgage liability).
Escrow: An intermediary who has all the funds and records (e.g a notary) until the sale is completed.
Fixed-Rate Mortgage: Repayment with an unvarying interest rate such as a constant interest-rate repayment loan.
ROI (Return on Investment): Profit that is produced on first and total cost of investment.
Bonus Tip: Ask your realtor or the mortgage company to help you understand the part that you are unable to grasp. It is communication-clarity that matters most on that account of making the investment decisions with grounds.
