Below is a list of some of the most common terms used when buying a Home.
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 lender determine the likelihood that you'll repay future debts.
Down Payment - Down payments are typically 3020% 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 home. The lower the rate, the better.
Pre-Approval Letter - A letter from a lender indicating that you quality for a mortage of a specific time.
Real Estate Professional - An individual who provides services in buying and selling homes. Real estate professionals are there to help you throught 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.