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First Time Homebuyer Vocabulary

Essential List of First-Time Homebuyer Vocabulary

By , 9:00 am on

Buying a house in Irvine can be confusing if it’s your first time, and it is even worse if you cannot understand what everyone else is talking about. Luckily, you do not need to worry too much about learning real estate lingo. Use this cheat sheet to figure out what your real estate agent and property sellers are talking about while you purchase your first home.

Mortgage Vocabulary

A preapproval means a lender has determined whether or not the buyer qualifies for a loan.

A fixed-rate loan is a loan with an unchanging interest rate.

An adjustable rate mortgage is a loan where interest rates are updated occasionally to keep pace with modern interest rates.

APR stands for the annual percentage rate, which is the amount the mortgage will cost you each year, including all fees.

Legal Vocabulary

The title is the entire bundle of rights associated with the property you are interested in buying. You can review what the title contains before buying the home.

An offer is a sales contract that constitutes a legal agreement between you and the seller once both parties sign it. When you submit an offer, the seller may accept or refuse it.

Offers can be contingent, which means your initial offer was accepted by the seller but the sale will only be finalized if certain criteria are met.

A property may be contract signed, which means a signed agreement has been reached, but the deal could still fall through before closing.

Financial Vocabulary

Earnest money is a deposit you make while first starting the home buying process. It shows you are serious about wanting to buy the home, and it is normally about one percent of the home’s value.

Closing costs are fees, taxes, and insurance people must pay at the end of a home buying transaction. They can be paid by both the seller and the buyer or just a single party.

Market value is the estimated price a home could reasonably sell at within a few months of the appraisal. Offers on homes may be for higher or lower than market value.

General Vocabulary

The signing is also referred to as “closing on a property.” This is scheduled after all contingencies are met, and it will require signing a large amount of documents that finalize the sale.

The home inspection occurs when a professional inspector examines the property and lets you know what is wrong with it. Most offers are contingent on the house passing an inspection.

An appraisal is a property valuation done by a licensed appraiser to discover the true market value of the house.

Recording is the county officially registering the new title after you sign on the home. You may not get the keys until the new title is recorded, which can take a few days.

Arm yourself with this cheat sheet to simplify the process of searching for a home. From single-family homes in Woodbridge to Turtle Rock Irvine townhomes for sale, there are many great properties currently on the market. A trusted agent from OC Residential can help you navigate the local market and find the property you’re looking for. Call 714-454-6304 today to start your search.

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