Real Estate Terms

Real Estate Terms

Rate Lock

Rate lock ? After, the buyer has chosen a property and their offer has been accepted, the lender receives the contract. At this point, a request can be made for the mortgage advisor to lock in the interest rate. This allows the lender to secure the current rate, meaning that if rates go up the […]
Real Estate Terms

Pre-Approval

Pre-Approval? A mortgage advisor provides the borrower with a letter stating the exact amount they are approved to borrow. This letter is based on the in depth financial information the borrower has provided.
Real Estate Terms

Pre-Qualification

What is a pre-qualification? This is when a mortgage advisor provides a possible loan amount that the borrower could possibly be approved for. Based on surface level financial information
Real Estate Terms

Escrow

An escrow account is held and managed by the title company, a third party in a real estate transaction. This account securely holds funds related to the transaction, keeping them separate from the parties involved until the terms of the contract are met. However, this escrow account differs from the one held by the lender, […]

Real Estate Terms Rate Lock Rate lock ? After, the buyer has chosen a property and their offer has been accepted, the lender receives the contract. At this point, a request can be made for the mortgage advisor to lock in the interest rate. This allows the lender to secure the current rate, meaning that if rates go up the […]

Real Estate Terms Pre-Approval Pre-Approval? A mortgage advisor provides the borrower with a letter stating the exact amount they are approved to borrow. This letter is based on the in depth financial information the borrower has provided.

Real Estate Terms Pre-Qualification What is a pre-qualification? This is when a mortgage advisor provides a possible loan amount that the borrower could possibly be approved for. Based on surface level financial information

Real Estate Terms Escrow An escrow account is held and managed by the title company, a third party in a real estate transaction. This account securely holds funds related to the transaction, keeping them separate from the parties involved until the terms of the contract are met. However, this escrow account differs from the one held by the lender, […]

Real Estate Terms Amendment Once all parties have signed the contract, it becomes an executed binding legal document. All agreed upon terms are now set. If a party needs to modify the terms, both the buyer and seller must sign an amendment that mutually authorizes the specific change. Think of the contract as the Constitution that can only be […]

Real Estate Terms Closing Cost It’s time for the weekly term. Our term of the week is Closing Costs. This is the amount paid separately from the down payment to facilitate the closing of your home. Home buyers’ closing costs typically range from 2% to 5% of the home’s purchase price. Understanding these costs upfront allows you to budget effectively […]

Real Estate Terms Foreclosure Our term is “Foreclosure”. Foreclosure is the legal process that a mortgage provider or lien holder may take to obtain ownership of a delinquent residence. This is why it is crucial in your initial home search to not only check all the wants in the home, but even more importantly to assess the practicality of […]

Real Estate Terms Equity Our term is “Equity”. It is the portion of the home’s value that the homeowner truly owns. This is a very simple process, determined by subtracting the outstanding loans, such as mortgages and other debts owed on the home, from the property’s current market value. AdrianHernandezHelps-JBGoodwin REALTORS® 📞(210)884-7299 📧adrian-hernandez@jbgoodwin.com Have an awesome day!

Real Estate Terms Appraisal I have decided to start a brand new series, with education as the pillar. I will now be showcasing weekly real estate terms that will tailor one’s mind to the world of real estate. Our first term of the week is “Appraisal”. This step is crucial for homebuyers utilizing loan products, such as mortgages, because […]