Whether you are buying or selling your home, there are many conditions that will arise. You`re not expected to know any bit of real estate terminology, so use it to your advantage! This guide can help you decipher some of the most common real estate terms, and it`s listed alphabetically to help you find what you`re looking for. A sales contract simply states that the buyer is interested in buying a property and the seller is interested in selling the same property. It is a legally binding document that also explains the terms of the agreement and holds everyone accountable for their actions. Have you tried to buy or sell your home just to be confused by all the conditions imposed on you? Fixed-rate mortgages mean that your interest rate will remain the same throughout your loan amortization period. This is common and is the opposite of a variable rate mortgage. For the person lending money, this is a predictable way to know how much their mortgage will be for the duration. If you`re looking for a home to buy, you usually need to be approved in advance by a lender before a broker can work with you. This will give you an amount for how much money you were approved after a lender checked your credit. Sometimes a prequalification is used instead, and the only difference is that it`s a rough estimate of the money you`re allowed for (again your information has been verified).
If you are looking for a mortgage, a variable rate mortgage, also known as an ARM, allows you to change interest rates. While there is an off chance that you may have lower interest rates in the future, you will pay more than at the beginning. Buying and selling a home can be an overwhelming process, especially if you`re not familiar with real estate jargon. You`re not alone and there`s a reason why so many people depend on real estate brokers and agents (and if you didn`t know, there`s a difference between the two). If a home is under contract, it means that there is a buyer who has sent an offer and is waiting to see if the seller accepts it.. . .