Key Terms To Know as You Move through the Home Buying and Loan Application Process
Report highlighting the estimated value of the property completed by a qualified third party.
Lenders rely on appraisals to validate a home’s value and ensure they’re not lending more than- the home is worth.
A letter from a lender indicating you qualify for a mortgage of a specific amount.
This is a critical step in today’s competitive market
The fees required to complete the real estate transaction. Paid at closing
Ask you, lender, for a complete list of closing cost items, including points, taxes, title insurance, and, more.
A number ranging from 300 to 850 that’s based on an analysis of your credit history. Helps Lenders determine the likelihood you” repay future debts.
Down payments are typically 3-20 % of the purchase price of the home. Some 0% down programs are also available,
Ask your, lender, for more information.
A provision in a contract requires certain acts to be completed before the contract is binding.
In today’s highly competitive market, some buyers are minimizing contingencies to make their offers seem more appealing.
A Measure of whether someone earns enough to qualify for a loan on a typical home based on the most recent price, income, and mortgage rate data.
Today’s low mortgage rates and increasing wages offset rising prices, making homes more affordable to buyers.
The value in your home above the total amount of liens against your home.
With current home proc appreciation, many homeowners are realizing they have more equity than they thought and they’re using it to move.
The interest rate you pay to borrow money when buying a home.
The lower the rate the better.