This is the Lingo to Use When Buying a Home
Working on buying a home involves several terms and definitions that you may not know. These terms are some of the common types that you may come across during your home buying process.
- Appraisal - This is another type of home inspection that will be thorough enough to discover the true value of a home. This is used to ensure the home is being sold for a fair price.
Cap - This is when there is a limit that is set up on an adjustable rate loan. This means that there is a limit to the highest amount of interest and regular monthly mortgage payments that can be placed on the loan.
- Closing - The end of the home buying process in which you would finalize all documentation, perform the necessary inspections, pay any fees or taxes, and receive the keys to a new home.
- Earnest Money - Money that the buyer pays to the seller in order to ensure a permanent decision to buy their home. This is usually a certain percentage of the full amount of the agreed upon price of the home.
- Principal - This is the full amount of the loan that a lender provides. It does not include any interest or other fees that apply to the loan.
These are some of the main terms that are important to know when you not only start your search but find a home as well. As you go through the home buying process, don't be afraid to ask about terms that you don't know or don't understand. It is the responsibility of your agent and lender to help you understand these things.
You can also find much information online, so you can do a Google search and find information on most any topic related to buying a new home. In addition, our website contains a wealth information regarding home buying.