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First Time Home Buyers - Vocab 101

Thursday, June 29, 2017   /   by Amy Herrmann

First Time Home Buyers - Vocab 101

Appraisal: An estimate of the quality or value of real estate as of a given date, done by a professional appraiser. (Most real estate transactions are contingent on appraisal unless otherwise stated)

Closing Costs: Fees paid at the end of the transaction by either buyer and or seller. They can include some of the following; taxes, insurance, other lender expenses, etc.

Earnest Money/Trust Money: A deposit made by the buyer to show the seller a good faith in following through with transaction. That amount should be determined when you make your offer on a house.

Home Inspection: A thorough examination of the house you're purchasing, done by the inspector of your choice. (If problems are found it is up to the buyers agent and sellers agent to mediate any repairs wishing to be done in order to move forward with the purchase. Keep in mind you don't always have to ask for repairs, you can use it as knowledge of what repairs will be needed once the transaction is closed). Paid by the buyer.

Home Owners Insurance: This is a huge step in the home buying process, your lender will usually help you find companies if you are not sure where to start. You definitely want to be protected if certain circumstances come about.

Home Warranty: a policy that is sometime provided by the seller for a year or a policy that you can buy to help you cover some routine home repairs, whether it be Heat and Air, plumbing, duct work, etc. Make sure you look over all companies and options to make sure you pick the best one for you.

Pre Approval: After you have spoken with a lender and provided all credit information needed to start moving forward they will then give you a pre approval letter. This is a great place to start that way you aren't looking way under or over your budget and just about all offers require a pre approval letter to be attached with it.

Purchase Offer: after you have found the house of your dreams your realtor should go over all the options on the purchase offer. You will decide the purchase price you want to offer, closing costs details, etc.

Survey: A map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey isn't always mandatory but always a good idea. This is a cost that is paid by the buyer.

Title Insurance: Protects homeowners against loss of their interest in property due to legal defects in title.

If you have any other questions about the home buying process or other terms you may not know exactly what they mean, just ask me!

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