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الاثنين، 1 سبتمبر 2014
For the home-buying newbie, there is much to learn, and while the experience of finding that first home should be fun, it's also a little intimidating. Every business has its own jargon and real estate is no exception. If you are hearing a lot of real estate words that you don't quite understand fully, you are definitely not alone.
We all have heard the word escrow, but it is quite possible that a first-time home buyer won't really understand what this means. Technically, escrow refers to an account that is opened by a third party once the seller and buyer agree on a sales price for a house. An escrow company will hold a check from the buyer in an escrow account, and this basically declares that the seller and buyer are serious about making the deal. Often, the period of time between opening the escrow account and the day you take possession of your new home is simply known as being "in escrow."
Your mortgage is probably going to be a big focus of your life in the coming years, and there are quite a few different types of mortgages. In general, you will hear the terms "fixed" or "fixed-rate" or "adjustable" when you talk with a lender. Your mortgage payment has two parts. One part pays down the amount that you owe the lender or bank. The other part is a payment of interest. A fixed-rate mortgage has a rate of interest that never changes. An adjustable-rate mortgage or ARM can change every year, which means your monthly mortgage payment also can go up or down every year.
Closing costs are yet another interesting term you will hear. These are the expenses relating to the closing of an escrow account. There are quite a few items that must be paid for during the escrow process and this includes appraisals, title insurance, recording fees, notary fees and commissions to the realtors. Typically, the sellers pay the real estate commission, which is the biggest chunk of closing costs, but buyers are responsible for paying for many of these expenses.
You might be wondering about the difference between appraisals and inspections. In order to get a loan, the bank or lender will make you pay to have the home appraised. The selling price of the home cannot be more than the value set forth in the appraisal. A bank won't lend money if you are paying more than you should for a home. Inspections are not always required, but definitely crucial, and you will want to pay for a quality home inspection and possibly other inspections such as termite inspections, geological inspections, roof inspections and anything that you might need based upon the age, location and general condition of the property.
These are just a few of the words that you will hear during your home-buying experience. If you are purchasing real estate in Texas Hill Country, the staff at Nixon Real Estate can explain just about any typical real estate term and help throughout the escrow process. You can find great homes for sale in Fredericksburg, Kerrville, San Antonio and other nearby towns, so call Nixon Real Estate and get started.
We all have heard the word escrow, but it is quite possible that a first-time home buyer won't really understand what this means. Technically, escrow refers to an account that is opened by a third party once the seller and buyer agree on a sales price for a house. An escrow company will hold a check from the buyer in an escrow account, and this basically declares that the seller and buyer are serious about making the deal. Often, the period of time between opening the escrow account and the day you take possession of your new home is simply known as being "in escrow."
Your mortgage is probably going to be a big focus of your life in the coming years, and there are quite a few different types of mortgages. In general, you will hear the terms "fixed" or "fixed-rate" or "adjustable" when you talk with a lender. Your mortgage payment has two parts. One part pays down the amount that you owe the lender or bank. The other part is a payment of interest. A fixed-rate mortgage has a rate of interest that never changes. An adjustable-rate mortgage or ARM can change every year, which means your monthly mortgage payment also can go up or down every year.
Closing costs are yet another interesting term you will hear. These are the expenses relating to the closing of an escrow account. There are quite a few items that must be paid for during the escrow process and this includes appraisals, title insurance, recording fees, notary fees and commissions to the realtors. Typically, the sellers pay the real estate commission, which is the biggest chunk of closing costs, but buyers are responsible for paying for many of these expenses.
You might be wondering about the difference between appraisals and inspections. In order to get a loan, the bank or lender will make you pay to have the home appraised. The selling price of the home cannot be more than the value set forth in the appraisal. A bank won't lend money if you are paying more than you should for a home. Inspections are not always required, but definitely crucial, and you will want to pay for a quality home inspection and possibly other inspections such as termite inspections, geological inspections, roof inspections and anything that you might need based upon the age, location and general condition of the property.
These are just a few of the words that you will hear during your home-buying experience. If you are purchasing real estate in Texas Hill Country, the staff at Nixon Real Estate can explain just about any typical real estate term and help throughout the escrow process. You can find great homes for sale in Fredericksburg, Kerrville, San Antonio and other nearby towns, so call Nixon Real Estate and get started.
About the Author:
Pammy McGrath enjoys reading about real estate blogs. If you are searching for licensed Texas Hill Country real estate agents, or to discover homes for sale in Fredericksburg TX, please go to the NixonRealEstate.com website now.
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