Key Terms to Know In the Home Buying Process

December 1st, 2020

Buying a home can be intimidating if you're not familiar with the terms used throughout the process. To point you in the right direction, here's a list of some of the most common language you'll hear along the way.

Appraisal - A professional analysis used to estimate the value of a home. A necessary step in validating a home's worth to you and your lender as you secure financing.

Closing Costs - The fees required to complete the real estate transaction. Paid at closing, they include points, taxes, title insurance, financing costs, and items that must be prepaid or escrowed. Ask your Wallick & Volk Mortgage Advisor for a complete list of closing cost items. 

Credit Score - A number ranging from 350-850 that's based on an analysis of your credit history. Helps lenders determine the likelihood you'll repay furture debts.

Down Payment - Down payments are typically 3-20% of the purchase price of the home. Some 0% down programs are also available. Ask your Wallick & Volk Mortgage Advisor for more information.

Mortgage Rate - The interest rate you pay to borrow money when buying a home. The lower the rate, the better.

Pre-Qualification Letter - A letter from your Wallick & Volk Mortgage Advisor indicating you qualify for a mortgage of a specific amount. This is a critical step in today's competitive market.

Real Estate Professional - An individual who provides services in buying and selling homes. They are there to help you through the confusing paperwork, find your dream home, negotiate any of the details that come up and so you know exactly what's going on in the housing market. A Wallick & Volk Mortgage Advisor can recommend a Real Estate Professional who will guide you through every aspect of the transaction. 

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Source: www.KeepingCurrentMatters.com