Do you know the terminology and language of buying a home?
Pre—Approval letter- A letter from a lender indicating you qualify for a mortgage of a specific amount.
Credit Score – A number ranging from 300-850 that is based on an analysis of your credit history. Helps lenders determine the likelihood that you’ll repay future debts.
Mortgage Rate – The interest rate you pay to borrow money to buy our home. The lower the rate, the better!
Down payment – Monies collected and kept in escrow for the purchase of a home based on the program you qualify for. The down payment can be from 3-20% of the purchase price, depending on the program. Speak to your lender for this info.
Appraisal – A professional analysis used to estimate the value of the home. A necessary step in validating the home’s worth to you and your lender to secure financing.
Closing Costs – The costs to complete the real estate transaction. Paid at closing, they include: points, taxes, insurance, financing costs and items that must be prepaid or escrowed. Ask your lender for a completed list.
Real Estate Professional – A licensed individual who provides services in buying and selling homes for a fee. Real estate professionals are there to help you through the confusing paperwork, find your dream home, negotiate any of the details that come up and help you know exactly what’s going on in the housing market.
For more insight, contact M. Celata Real Estate for a greater explanation of this process @ 781-229-7500.
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