Thinking about buying a home? Study the terms below to help you make informed decisions throughout the process.
Amortization: The distribution of payments into installments over time. The terms of the agreement will determine how much of each payment goes toward interest and how much goes toward paying down the principal.
Balloon Payment: The outstanding balance payment due at the end of some loans.
CC&Rs: The covenants, conditions and restrictions overseen by Homeowners Associations.
Comps: Short for comparable properties to the home you’re buying or selling, used by Realtors to help determine property value.
Closing: The meeting between the buyer and seller where mortgage documents are signed and the deed is transferred.
Possession: The date when the buyer receives the keys and takes possession of the house
Deed: The legal document that transfers ownership of the property.
Disclosures: Information about the home that a seller must provide to a buyer. The extent of disclosures varies by state.
Deposit: A deposit of money buyers pay to sellers to prove their genuine intent to purchase. If the buyer walks away through no fault of the seller, the seller may keep the deposit.
Equity: What’s left of the fair market value of a home after subtracting the amount the owner still owes on the mortgage. “Sweat equity” refers to the manual labor performed to maintain and improve the property over the years.
There are dozens of terms like this that are used in any given Real Estate Transcation. Is your head spinning from all the industry jargon? I can help translate these and assist with ensuring that your Real Estate Transaction goes smoothly!