Buying a new home can be quite the undertaking. An experienced and licensed Realtor can help you make sense of the real estate world, and we can help you make sense of a few of the things they might discuss with you. Below are some common terms that come up when buying a home and what they mean to you.
- Amortization – the process of spreading payments out over time. In real estate this is the length of time that an owner chooses to take to pay off the mortgage.
- Appraisal – an unbiased determination of the value of a property, used to determine how much a home should be mortgaged for. Typically performed by qualified certified appraisers.
- Closed Mortgage – a mortgage provided by a financial institution that does not allow the borrower to pay off without penalty.
- Home Inspection – a non-invasive check of a home by a qualified home inspector to see if there are major defects that may arise in the near future. The inspection should include exterior items as well as interior items along with the age of the home and the related elements.
- Open Mortgage – a mortgage provided by a financial institution that allows the borrower to pay it off completely without penalty.
- Seller’s Agent – the real estate agent who is working directly for the seller. This gives the seller the concerted effort of the agent for the purpose of selling the home.
- Buyer’s Agent – a real estate agency agreement where the agent works for the buyer. It is becoming more and more popular to have buyer agency agreements signed by the prospective buyer, and this action provides benefits for both the agent and the buyer.