By Living Room Realty, March 30, 2022
Does the home buying lingo intimidate you? Have no fear, Jamie is here, with a list of home buying lingo to bring you up to speed!
Let’s start with the fixed mortgage rate and adjustable rate. A fixed rate is simply a loan that has an interest rate that will remain the same for the life of the loan. An adjustable-rate can change from year to year. That’s it, pretty simple, right?
Another term you’ll hear is Escrow. Escrow is defined as the holding of funds, by a neutral third party, prior to closing. They hold the money until the deal gets done!
CONTINGENCES!
One of the most important words for negotiations in this market! Sellers are looking for buyers who can purchase the home with the least amount of obstacles. Like buyer home sales, inspections, and mortgage contingent. The easier you can make it the better chance you have to “win” the multiple offer market we’re in.
You’ve made it! It’s closing time.
With closing comes closing costs. Typically, closing costs range from 2% to 5% of the purchase price. Examples of closing costs include fees related to the underwriting of the mortgage, real estate commissions, taxes, insurance, and record keeping.
I hope just knowing these most common phrases will help to make the buying process a little less frightening!
