House Hunting? Familiarize Yourself with These Terms!

Businesswoman examining a contract meticulously with a magnifying glass at office

House-hunting – what an exciting thought! There are few times in your life that can match the thrill of finding and buying your very first home. But like any other major decisions in your life, choosing your first home is not something you should rush into.
Aside from getting your finances sorted out and knowing what you want for and from your first house, it pays to be familiar with some of the most commonly used words and phrases in the industry.

Pre-Approval
It is important to obtain pre-approval for a loan from a bank or a credit union even before you start house-hunting. After all, the last thing you want is to see your dream house only to find out later that you can’t afford it. Getting pre-approved requires a lot of documents and usually takes a while to process so it’s better that you have this all sorted out just so you won’t experience any delays when you do find that home you want.

Inspection
Once you find a home that you like, you should hire a professional inspector to thoroughly check the state of the home, including key elements like electrical, foundation, and plumbing, among others.

Appraisal
Not to be confused with inspections, appraisals consider value while inspections are about the condition of the home. A third-party appraiser will look at the worth of the home you are eyeing by comparing it with the recent sale prices of similar homes in the area and adjusting to consider some unique aspects of the home itself.

Contingencies
Some contingencies may be placed into the closing documents, including the buyer’s ability to terminate the contract if the house is not appraised for the expected price, or perhaps termination of the contract if no clear title can be provided.

Buyer’s Agent
A seasoned professional like Tammy Samuels can assist you in your home-buying process which can be quite daunting if done on your own. A buyer’s agent will represent your interest (as a buyer) solely and make sure that you find the best home and get the best price for it.

Listing Agent
This is a realtor who represents the seller. Listing agents are responsible for marketing the listing as well as negotiating the best terms for the sellers.

Power of Sale
When a homeowner is not able to make scheduled payments on their mortgage loan, a power of sale may be initiated by the lender. It is through this process that the lender is able to take ownership of the borrower’s home. Most power of sale homes come with a lower price tag, but they may also need a lot of work.

As someone who is about to become a homeowner, it is important that you familiarize yourself with these terms to better understand the whole process of purchasing a property. However, you are going to need more than that. You’ll find that house-hunting, as well as the buying process itself, can be a whole lot easier with the help of a reliable agent like Tammy Samuels. Give her a call and take a step closer to finding your dream home!