For many reasons, buying a home is frequently listed as one of the most stressful things you can do. If it’s not the paperwork, it’s the emails, phone calls, and the constant feeling that you are in a race against time.
However, one element that adds an unnecessary burden on the average person is the endless amount of jargon. Yes, there is no doubt that some terms in real estate are used by those with a real estate license to cloud the judgment of unassuming house hunters.
So to stop you from falling into that trap, we have put together a list of some of the most common that you will hear throughout the process.
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Adjustable-Rate Mortgage
Before buying a home, you need to be clear about if it is financially viable for you to do so. That is why being the different kinds of mortgages are vital terms in real estate for you to be clear on.
The first we will discuss is an adjustable mortgage rate. The payments for this mortgage will vary often yearly.
The benefit is that they usually cheaper to begin with, but there is a danger that they can rise dependent interest rates.
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Fixed-Rate Mortgage
A fixed-rate mortgage is one in which the monthly payment of the loan remains the same during the whole period of the mortgage. Periods vary from 10 to 30+ years but in having no unexpected rises over that time they can give stability to those who opt in.
Fixed-rate mortgages tend to be the more popular, however, the right option for you will depend much on your circumstances and what the market and economy are like.
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Deed and Title
Perhaps the most important document in real estate, the deed or title confirms the ownership of the property.
But although often used synonymously there is a difference between these two terms in real estate. The deed is the physical document containing the names and property details. On the other hand, the title is a legal concept confirming the owner’s legal right to the property, including the responsibilities that come with it.
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Backup Offer
Unfortunately, after finding the home of your dreams you could get to the party a little too late. It is not uncommon once you have decided to put in an offer to find that the home is already under contract (click here to find out the meaning of under contract).
But as nothing in life is certain there is no reason to be disheartened. Many things can go wrong, meaning that potential sale could fall through. A backup offer is when your real estate agent helps you make a clear offer to the seller that they can fall back on, putting you at the front of the queue.
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Closing
If you are buying a home or eager to sell, closing is one of the most important terms in real estate in your journey.
When you close you finalize all the paperwork in relation to your agreement. After a real estate appraisal, documents are signed and the buyers officially become the new owners. A date is usually set for this when negotiations happen.
Once completed the new owners will need to register the property, a process which can take up to 60 days.
Know Your Terms in Real Estate
So how many did you know? No matter where you are in your journey, knowing these and more terms in real estate will ensure that you can handle matters on your terms.
We hope you enjoyed our quick read. If you are looking for more great real estate content, check out the rest of our site!