FINANCE
Mortgage: A loan to finance the purchase of real estate, typically with a specified term and interest rate.
Annual Percentage Rate (APR) / Interest Rate: The percentage charged by a lender for the use of borrowed money, expressed annually as a percentage of the loan balance.
Principal: The original amount of money borrowed in a loan, excluding interest and other charges.
Amortization: The process of gradually paying off a loan over time through regular payments of principal and interest.
Fixed-Rate Mortgage: A mortgage with an interest rate that remains constant for the entire term of the loan.
PITI (Principal, Interest, Taxes, Insurance): The components of a mortgage payment, including principal and interest, property taxes, and homeowners insurance.
DUE DILIGENCE
Appraisal: An evaluation of a property's value by a licensed appraiser to determine its fair market value.
Home Inspection: A thorough examination of a property's condition, that should be conducted by a licensed home inspector, to identify any issues or potential problems or just anything that can affect the value of the home you are purchasing.
Title Insurance: Insurance that protects the buyer against any defects in the title of the property, such as liens or claims against ownership.
Title Search: A review of public records to ensure that the seller has a legal right to sell the property and that there are no outstanding claims or liens.
Title Company: A company that specializes in verifying ownership of a property and facilitating the transfer of title from seller to buyer. In Guam, we have title companies like Security Title, Title Guaranty, and Pacific American Title that you can choose as a buyer. This title company will also act as a third-party facilitator for the transaction.
Survey: A drawing or map showing the precise boundaries of a property, including any encroachments or easements.
CONTRACT & NEGOTIATIONS
Contingencies: Conditions that must be met for a real estate contract to be binding, such as a satisfactory home inspection or securing financing that helps protect you as a buyer on your purchase.
Underwriting: The process by which a lender evaluates a borrower's creditworthiness and the risk associated with lending money.
Escrow: An agreement where funds held by a third party on behalf of the buyer and seller until the completion of the transaction.
Earnest Money : Also known as good faith deposit, is a deposit made by the buyer to demonstrate their serious intent to purchase the property. It is usually 1% of the purchase amount and is deposited and held in the escrow account until closing.
Counteroffer: A response to an initial offer by the seller, proposing changes to the price or terms of the sale.
If you have any questions about the home buying process or would like to work with me, you can email me at carranzajoanna2@gmail.com. Happy house hunting!
댓글