Home buying terminology is like its own language and understanding it will help you make the most informed decisions. Thankfully, there are several glossaries that will help you learn this important terminology quickly and easily. These handy reference guides are alphabetically arranged making them ideal for quick education. These reference books will help you find everything, from "offer", to "acceptance", so that there's no need to be surprised.
Due-on-Sale
Due-on-Sale clauses form an important part of home-buying terminology. These clauses prevent the seller from foreclosing upon the property after it is sold. The clauses are often found in mortgages and are designed to protect lenders.
Earnest money deposit
An earnest cash deposit is an important component of the home purchase process. It goes toward the total purchase price and closing costs. The money must be returned if the house is not sold, or if the title is damaged.
Good Faith Estimate
Lenders provide a Good Faith Estimate, which outlines all costs associated with a mortgage transaction. Although lenders are not required by law to provide this document, consumers need to be aware of all costs involved in a mortgage transaction. This can help them decide which costs may be subject to change. Some costs are fixed and cannot change while others are adjustable by 10%.
Discount Point
A Discount Point, a small upfront payment, can reduce your mortgage interest rates by as much as 0.25%. This could save you up to $29 per month. These points are also deductible from taxes. They're most advantageous for long-term home owners, especially those who plan to live in their new home for more than ten years.
Days on Market
It matters what your price range is and the location, so it is important to check how long a home was on the market. If it's been listed for too long, it's likely a buyer will assume there's something wrong with it. It might be too expensive, require staging, or not desired by most buyers. Regardless of the reason, knowing how long a home has been on the market can help you decide if you should make an offer, or move on to another home.
Condominium
It's important that you understand the terminology when buying a condo. A condo is a large complex property that includes individual ownership units in a larger building. While the individual units may be separate, the community shares common areas and rules. The daily operation of the complex is overseen by the management board.
Manufactured Housing
It is possible to save money by purchasing a manufactured house. These homes are built in factories to meet HUD standards, and they can be spacious and similar in style to site-built homes. Manufacturers may offer style upgrades like higher ceilings or custom floor plans.
FAQ
What is the average time it takes to get a mortgage approval?
It all depends on your credit score, income level, and type of loan. It typically takes 30 days for a mortgage to be approved.
What should I do if I want to use a mortgage broker
A mortgage broker can help you find a rate that is competitive if it is important to you. Brokers are able to work with multiple lenders and help you negotiate the best rate. However, some brokers take a commission from the lenders. Before signing up, you should verify all fees associated with the broker.
Is it possible to get a second mortgage?
Yes, but it's advisable to consult a professional when deciding whether or not to obtain one. A second mortgage can be used to consolidate debts or for home improvements.
Statistics
- Based on your credit scores and other financial details, your lender offers you a 3.5% interest rate on loan. (investopedia.com)
- Some experts hypothesize that rates will hit five percent by the second half of 2018, but there has been no official confirmation one way or the other. (fortunebuilders.com)
- Over the past year, mortgage rates have hovered between 3.9 and 4.5 percent—a less significant increase. (fortunebuilders.com)
- It's possible to get approved for an FHA loan with a credit score as low as 580 and a down payment of 3.5% or a credit score as low as 500 and a 10% down payment.5 Specialty mortgage loans are loans that don't fit into the conventional or FHA loan categories. (investopedia.com)
- This means that all of your housing-related expenses each month do not exceed 43% of your monthly income. (fortunebuilders.com)
External Links
How To
How to buy a mobile home
Mobile homes are homes built on wheels that can be towed behind vehicles. Mobile homes were popularized by soldiers who had lost the home they loved during World War II. People who live far from the city can also use mobile homes. These homes are available in many sizes and styles. Some houses are small, others can accommodate multiple families. There are even some tiny ones designed just for pets!
There are two main types for mobile homes. The first is built in factories by workers who assemble them piece-by-piece. This is done before the product is delivered to the customer. You could also make your own mobile home. First, you'll need to determine the size you would like and whether it should have electricity, plumbing or a stove. You'll also need to make sure that you have enough materials to construct your house. You will need permits to build your home.
There are three things to keep in mind if you're looking to buy a mobile home. First, you may want to choose a model that has a higher floor space because you won't always have access to a garage. A model with more living space might be a better choice if you intend to move into your new home right away. You should also inspect the trailer. Damaged frames can cause problems in the future.
You need to determine your financial capabilities before purchasing a mobile residence. It's important to compare prices among various manufacturers and models. Also, take a look at the condition and age of the trailers. While many dealers offer financing options for their customers, the interest rates charged by lenders can vary widely depending on which lender they are.
A mobile home can be rented instead of purchased. Renting allows for you to test drive the model without having to commit. Renting is expensive. Renters generally pay $300 per calendar month.