ABC’s of housing: These are the different categories of housing.
- Luxury houses
- Middle class houses
- Low income homes
Adjustable rate mortgage: This is when the interest rate that is charged on your loan changes sporadically.
Fixed rate mortgage: This is just the anonym of adjustable rate mortgage where the interest rate remains the same throughout the course of the loan term.
Escrow: This is the legal vernacular. A person, basically an Escrow officer is appointed to hold on to the money while a buyer and seller are negotiating a deal. Once it is finalized, the money is transferred to the seller.
Lien: It is a legal right bestowed upon the seller to safeguard him from loss. It can be exercised if the buyer does not pay him the money he owes.
Preapproval: This is in reference to a bank loan. Before the bank can grant a borrower loan, certain financial details are taken into account like the salary and general expenses.
Contingency: In plain and simple words, it simply means that all the terms and conditions should be met. There are various contingencies like financial contingency, inspection and sale contingency.
Appraisal: There are various modules that act as a template in determining the value of a property. It is the evaluation of property, taking into consideration things like current market value.
Closing costs: This is what the buyer owes to the seller at the end of finalizing a deal. This could include attorney and inspection fees among many others.
Title insurance: Lender’s insurance safeguards the lender during the process of lending money.
Real estate agent: He is the person hired by the buyer in the search for property, research and discussing the price between the buyer and seller.
Broker: He is much like a real estate agent who performs the same role but the difference here is that he is exclusively qualified, having taken a course and passed an exam on the same. There are plenty of realtors like Royal Canadian realty and Papachristouimmobiliers.
Listing agent: As the name suggests, he lists down the homes and helphomeowners in selling or leasing the property.
Earnest money deposit: This is a sum of deposit that is made by the buyer to a third-party holder who retains the money until the transaction is finalized. In tragic cases where the sale does not fall through, the money could either go into the buyer or seller’s account depending on the terms of contract.