Congratulations – you’re in the arena to purchase your first ever home! That in itself is an amazing accomplishment.
Because you’re a first-time homebuyer, there will be a lot of real estate vocabulary that you might not be totally familiar with. But don’t fret! This is where we come in to help.
Check out some of the top real estate vocabulary to familiarize yourself with:
- Adjustable-rate Mortgage: After a period of time that could be anywhere from three to 10 years, the interest rate on an adjustable rate mortgage will be adjusted by the lender in accordance with current interest rates.
- Annual Percentage Rate: These are also known as an APR. This is the standardized method of showing you the total cost of borrowing money. This will be a combination of the interest rate charged by your creditor, in addition to any fees you may be charged for.
- Appraisal: These are professional opinions of the market value of a property. Appraisers use a number of methods to determine the appropriate value of the home, including the current market value and seeing what prices homes nearby sold for.
- Closing Costs: These fees will come up after the completion of a sale. They may be related to insurance fees, survey fees, or attorney fees and will vary from location to location.
- Fixed-rate Mortgage: This mortgage’s interest rate will never change – even if the term of the loan is 30 years.
- Title Insurance: This policy protects a lender’s or owner’s interest in real estate property from assorted types of unexpected claims of ownership.
Understanding real estate terminology can help arm you with the knowledge and confidence needed to make the best decisions for you!
Check out Alliance’s Buyer-Seller Guide for more information and tips!