When you’re buying a home, you need to make sure you have all the right knowledge necessary to make the best decisions for yourself. Hiring a real estate agent is definitely a must to have guidance and advice throughout the process. While you may ask your real estate agent about the jargons, it’s still best to have a little clue about them. Here are some of the industry terms you will definitely hear when you decide to buy a home.
Your credit score is the evaluation of our creditworthiness to know how much mortgage you can qualify for. Scores over 700 mean that you pay your bills on time and you don’t have any credit, while scores less than 400 mean that you often get in trouble when it comes to paying bills on time. Building up your credit score first because this is a big factor when getting a loan.
Mortgage rate in Fort Myers pertains to the amount of money you will need to pay per month for a period of time. Some mortgages are adjustable, while some are fixed, notes an expert from Primary Residential Mortgage, Inc. You’ll choose depending on your preference. The amount of mortgage rate also depends on how much down payment you’ll make.
Appraisal pertains to the determination of the value of the home you’re planning to buy. You need to work with a professional appraiser to know the appraisal value of the property. They take into account the initial purchase prices, geographical location, recent sales of comparable properties, and more. The appraisal value should match or go higher than the lender’s loan amount for you to qualify.
Closing costs cover the lender’s fees, prepaid interest, transfer taxes, property taxes, title insurance premiums, credit check fees, attorneys’ fees, appraisal and inspection fees, real estate agent commissions, deed filing fees, and more. You must settle these transaction charges before the transfer of property.
Keep these terms in mind to be more aware of what you need to do when buying a home.