Buying a Home? Do You Know the Lingo?

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Real Estate

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Buying a home can be intimidating if you are not familiar with the terms used during the process.

.  To start you on your path with confidence, below is a list of some of the most common terms used when buying a home.

.  The best way to ensure that your home-buying process is a confident one is to find a real estate professional who not only puts your family's needs first, but will guide you through every aspect of the transaction with 'the heart of a teacher.' 

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.

Closing Costs - The cost to complete the real estate transaction.  Paid at closing, they include:  points, taxes, title insurance, financing costs, 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.  0% down programs also exist, ask your lender for more information.

Mortgage Rate - The interest rate you pay to borrow money to buy your house.  The lower the rate, the better.

Pre-Approval Letter - A letter from a lender indicating that 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 to help you know exactly what's going on in the housing market.

The best way to ensure that your home-buying process is a confident one is to find a real estate pro who will guide you through every aspect of the transaction with 'the heart of a teacher', putting your family's needs first.