The process of buying your first home can be intimidating enough, until you realize there's an entire language of terms you need to learn to fully understand the process and then things become even more daunting. From the different types of mortgages to the process of putting in an offer and then closing on a property, real estate brokers will toss around terms and phrases that may go right over your head. Fear not. We polled some experts and compiled a list of must know lingo to help you navigate this intense but exciting process.
ADDENDUM
A separate document form describing a change or addition to the initial purchase agreement. Addendum a can be used for many items, for example changing the closing date.
Appraisal
The appraisal is the process of determining the value of the home. This is required by the lender and organized by its choice of an impartial professional appraiser. The results may not be the same amount as the selling price. If the value comes back lower, it could result in additional negotiations between the buyer and the seller.
Adjustable Rate Mortgage
A mortgage that has a fluctuating interest rate. ARMs may have lower initial interest rates for a set time and then start to adjust according to an index.
Certificate Of Title
This proves that, that property is legally owned by the seller and no other institution or party has any claims.
Closing
This is when they buyer, agent or lawyer, and the escrow agent meet with the seller and their representatives to finalize the purchase. This will incur fees known as closing costs which include attorney's fees, a loan origination fee, and other charges totaling around six percent of the house.
Comparative Market Analysis
This unseen a homes market value is determined in order to come up with a fair asking price. This will be done by a broker who will find the CMA by comparing the home to other similar properties in the vicinity that have recently sold.
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