Key Terms To Know In The Homebuying Process
Appraisal
A professional analysis used to estimate the value of a home
A necessary step in validating a home's worth to you and your lender as you secure financing.
Closing Costs
Fees required to be paid in escrow to close the transaction
These costs include loan points, title insurance, lender fees, property taxes and other fees. We can give you an estimate upon request.
Credit Score
Number ranging from 300-850
Your score signals the likely risk you will or won't repay your debts. Higher credit scores are thought to mean less risk and lenders will lend at the best rates.
Down Payment
Your Skin In The Game
Down payments vary. Typical down payments are 10-20%, but programs exist requiring lower down payments, too. Ask us!
Mortgage Rate
The Interest Rate Your Bank Charges
The mortgage interest rate is the primary way your lender makes money from lending to help you buy your property.
Pre-Approval Letter
Pre-Qualification Is Even Better
These days you'll likely find yourself in a bidding war to acquire a property. Sellers will usually pick the buyer queued up to close fast.
Realtor
Buyer- & Geo-Specialists Are A Bonus
Did you know that Realtors and real estate agents are different? Ask us about the difference and why hyperlocal expertise is so important.
Source: Simplifying The Market
These are just a few of the terms and concepts that homebuyers in Silicon Beach should know to facilitate a great outcome. We work hard to educate our client every step of the way. Do you know about our Buyer Edge program? Learn more here.
This post is from our “Buyer’s Edge” series, content designed to give real estate buyers in Silicon Beach an edge in a competitive residential real estate market. Read more about our full Buyer’s Edge program on our website. Want help buying real estate in Silicon Beach? Contact us, grab time on our calendar or read more Buyer Edge articles. Need help beyond Silicon Beach? Reach out and let us help you find a high caliber agent with hyperlocal expertise in that area.