Key Terms To Know When Buying a Home
A report highlights the estimated property value completed by a qualified third party.
Lenders rely on appraisals to validate a home's value and ensure they're not lending more than it is worth.
The fees required to complete the real estate transaction are paid at closing. Ask your lender for a complete list of closing cost items, including points, taxes, title insurance, etc.
A number ranging from 300-850 that's based on an analysis of your credit history.
This helps lenders determine the likelihood you'll repay future debts.
Down payments are typically 3.5-20% of the home's purchase price. Some 0% down
programs are also available. Ask your lender for more information about what you may qualify for.
The interest rate you pay to borrow money when buying a home. As mortgage rates fluctuate, consult a lender to know how it can impact your monthly mortgage payment.
A letter from a lender that shows what they're willing to lend you your home loan. This, plus understanding your savings, can help you decide on your target price range.
A provision in a contract requiring an inspection to be completed. This essential step provides information on the home's condition and potential repairs.
A measure of whether someone earns enough to qualify for a loan on a typical home based on the most recent price, income, and mortgage rate data. When home prices and mortgage rates are higher, it can impact affordability.
The value of your home is above the total amount of liens against your home. Many homeowners realize they have more equity than they thought and use it to move.
Buying a home is a major transaction that can seem even more complex when you don’t understand the terms used throughout the process. If you’re looking to become a homeowner this year, it’s important to know these housing terms and how they relate to the current market so you feel confident throughout the home-buying process.
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