Ultimate Real Estate Glossary for Beginners – 10 Most Useful Words
Real estate terminologies are hard to understand sometimes. If you’re new to the industry, you need to study to keep up with the others. However, analyzing these words are not just for real estate professionals. Homeowners need to understand these too.
Are you applying for a home loan for the first time? You need to have an idea of these useful real estate words. Even the Best Mortgage Lenders in Corpus Christi, TX highly recommend you read these. Why? It is because it would be easier to talk to your broker, agent, or lawyer if you know the basics. You also need to understand the documents you sign. Plus, knowing all these can protect you from scammers and other fraudulent activities.
You will encounter this word a lot of times. Amortization means the portion of the loan payment you need to pay the accruing interest. This payment could be a monthly payment, and it will decrease over time. When the loan balance decrease, the interest portion will also decrease. Amortization will help you pay your loan amount into small sections.
An application may refer to the form used in applying for a mortgage loan or the process itself. This application form contains information about you, the borrower, your income, savings, debts, assets, and more. This loan process is crucial because the information you put in the form will help you approved the loan.
An appraiser refers to a professional individual who is trained to give an estimation of properties. They are instructed to provide a value of real estate properties and home value. There is some appraiser that works directly to mortgage company lenders. Some also work independently. If you want to know more about your home value, hire a professional appraiser.
The word “broker” has a lot of meaning. But, one thing is for sure, it refers to a person. In the real estate industry, most realtors are often called “agents.” These agents work under a real estate broker. However, some agents are brokers as well. They are the ones who bring two parties together for any type of legal transaction. For example, brokers are somewhat like a bridge that connects homeowners and mortgage company lenders. They will get a commission or fee for doing this job.
Closing has a different meaning in the real estate world. A real estate transaction is considered as “close” when everything is signed, and all the requirements are met. But in some states, “closing” means a final meeting where money changes hands. It doesn’t refer to a ceremony.
A co-borrower refers to a person who will help you pay the loan. He or she also has the right in the title to the property. If you don’t have money, you can ask your spouse to be your co-borrower.
This word is well-known to loan transactions. If you’re applying for a home loan, the house is your collateral. You can also pick other collateral property you have. It depends on the loan transaction and the company you’re applying.
Good Read: Investopedia Collateral Definition
A conventional mortgage is a type of mortgage loan that is not issued by the government. VA or Veterans Affairs Loan and FHA or Federal Housing Administration Loan is not a conventional mortgage.
If you fail to make a payment within the given time, you’re tag as default. Usually, you should make a payment within 30 days of the due date to avoid default.
Government Loan Mortgage
Unlike a conventional mortgage, the government guarantees the government mortgage loans. The best example of this type of loan are the following; FHA or Federal Housing Administration, VA or Department of Veterans Affairs and RHS, or Rural Housing Service. If you want Best Mortgage Lenders in Corpus Christi TX, visit their website now. They will assist you and explain to you these words.
Good Read: Real Estate and Mortgage Resources