Homebuyers Dictionary: Terms You Need to Know
Buying a home is one of the biggest investments an individual can make.
Whether you are a first-time homebuyer or considering re-entering the market, our Homebuyers Dictionary will help guide you throughout your home buying journey.
Appraisal: The process of developing an estimate of the value of a home.
Binder: A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller.
Certificate of Occupancy: A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations.
Closing Costs: Fees associated with completing the real estate transaction.
Credit Score: Ranging from 300-850, this number is based on your credit history.
Down Payment: An initial payment made when something is bought on credit. They are usually 3-20% of the price of the home.
Escrow: When a neutral third-party holds onto something of value for a predetermined amount of time
Mortgage: A mortgage is a document, signed by a borrower, that gives the lender a security interest in the property.
Mortgage Rate: The rate of interest charged by a mortgage lender to borrow money when buying a home.
Mortgage insurance: This insurance protects the lender if for some reason you become unable to pay your monthly mortgage payment.
Pre-Approval Letter: Designed to inform a potential home buyer that their odds of final loan approval is strong.
Walk Through: A final inspection of a home before closing to specify items that need to be corrected.
Zoning; Regulations established by local governments regarding the location, height, and use for any given piece of property within a specific area.
Start your Journey
Now that you are a professional when it comes to buying terms, it’s time to start your homebuyer’s journey!
Reach out to one of our agents today!