Can You Define These 7 Real Estate Terms?

Some real estate terms can be daunting to buyers. My goal is
to help you understand them better, so you can navigate the
process more comfortably.





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Searching for a home can be an intimidating process, especially
with regards to the language that comes up during a real estate
transaction. For today’s topic, I’ll be providing a short
glossary of key real estate terms you should know as a homebuyer.
My goal is to make you feel more comfortable with some of the
basic terminology.


Closing costs: The cost to complete the real estate
transaction. These costs are in addition to the price of your
home. Some examples could be your loan, the closing cost
points on your loan, transaction fees, escrow costs, etc.


Appraisal: A professional analysis used by your bank
to estimate the value of your property. This includes
examples of similar homes that sold in your immediate market.


Credit score: A number ranging from 350 to 850 that is
based on an analysis of your credit history. Your credit
history plays a significant part in securing a home mortgage;
it helps the lenders determine how much of a loan you would
qualify for. Many buyers believe you need a score over 780 in
order to get a good home loan, but in fact, over 55% of all
the home loans are done with buyers with FICO scores less
than 750.


Down payment: A portion of the cost of the home paid
up front to secure the purchase of the property. A down
payment varies widely depending on where you are in the US,
and how competitive you want to be in your presentation of
your offer to buy a home. I’d love to elaborate more on that
specifically with you, so give me a call.


Escrow: The holding of money or documents by a neutral
third party for closing.


Mortgage interest rate: The interest rate you pay to
borrow the money you need to buy your home.


Pre-approval letter: A letter from a mortgage lender
indicating you qualify for a loan for a specific amount and
that your income and assets have been verified. This letter
is a must-have in the highly competitive market we’re in.




We as real estate agents want to help you get through this
sometimes confusing process. The negotiation of the transaction
can also be overwhelming, but we’re here to help you. If we can
assist you in any way regarding buying or selling a home, please
reach out to me and I’d love to help you out.