Are you new to the Real estate industry and often get caught up between the professional’s terminology? Don’t worry; we have simplified these terms for you. Here is a collection of 15 Real estate terms that you may encounter while dealing in the Business. If you seek an apartment for sale or any property listings, these words may come in handy.
1. Mortgage
The amount is taken as a loan to buy a house or a flat. The person’s property is the security to get the money.
2. Bridging Loan
It is a short-term loan taken to bridge the gap between selling your current house and buying a new one. As soon as the old property gets, a sold person can pay off the loan.
3. Deeds
The official paperwork certifies the ownership of the real estate.
4. Deposit
It is the lump sum amount that the buyer pays towards the cost of the property. The deposit ensures that the seller gets protection in case the buyer walks away from the deal.
5. Equity
Equity is the amount that the homeowner owns. It is the difference between the mortgage he owes and the value of the property.
6. First-time buyer
They are people who buy their house or apartment for the first time and therefore have no mortgage.
7. Collateral
It is the security against the loan. In the case of the mortgage, collateral is a house or flat.
8. Cash reserves
For closing a deal, the buyer needs to provide a down payment and the closing cost. After the expense of the two, the specific amount left is called the cash reserves.
9. Closing
Closing refers to the meeting where the deal is made final by the completion of the paperwork. The buyer and seller sign the paper, making the down payment and the closing cost.
10. Closing cost
The additional charges paid by the buyer cover various aspects like title insurance, taxes, and other related fees.
11. Contingencies
The term refers to the real estate purchase agreement clause specifying a requirement to bind the contract legally.
12. Escrow
It is an account that the lender sets up to receive monthly payments from the buyer.
13. Shared ownership
Shared ownership allows first-time buyers to purchase a share in the property. The buyer pays rent for the remaining share or can buy more later.
14. Pre-approval
Before purchasing a house, the buyer can get a pre-approval from the bank, estimating the bank’s lending amount. It determines how much the buyer can afford.
15. Listing
Listing is a property that falls under the category of ‘For Sale.’
Connect with Housal to get great deals on Condo for Sale, Apartment for sale, and other property listings. Make an intelligent choice.