Redfin’s 10 Real Estate Terms Everyone Should Know

10 Real Estate Terms Everyone Should KnowPurchasing your very first home should not really be complicated, but it’s not a walk in the park, either. One of the most confusing things for first time home buyers isn’t finding first time home buyer programs, it’s the vernacular used. Buying a home is like learning a new language.

Redfin, a real estate company that serves 22 metropolitan areas. They put together a list of 10 real estate terms everyone should know:

1.) Buyer’s Agent vs. Listing Agent: There are usually two agents involved when you buy a home; the “buyer’s agent,” who represents you, and the “listing agent,” who represents the home seller. One thing many people don’t realize is that when buying a home, you don’t have to pay your real estate agent; they’ll get a commission from the home seller.

2.) Fixed Rate vs. Adjustable Rate Mortgages: Conventional loans include “fixed rate” and “adjustable rate” mortgages. A fixed rate mortgage has a predetermined interest rate throughout the life of the loan; the most common are for 30 years. An adjustable rate mortgage has a variable interest rate; the most common are for 5, 7, or 10 years.

3.) Pre-approval Letter: Before you apply for a mortgage or even start looking for a home, you should get a pre-approval letter from the bank, which is an estimate of how much they’ll lend you. This letter will help you determine what you can afford, and ensures home sellers that you will be able to get a loan when needed.

Advice for the First Time Home Buyer

Buying your first home is a great time full of excitement and even fear. The process of buying your first home is unfamiliar and can be a bit intimidating. There are several mortgage loan programs available and it is important to know the difference between them before signing on the dotted line. You should also know what factors can increase or even decrease your chance of getting a great rate.

What is Your Bottom Line?

Many first time buyers end up purchasing a home that is out of their price range and they can’t afford it. Many people make the wrong assumption. Just because a loan is approved does not mean you can actually afford the monthly payments. Lenders do sometimes approve loans that are higher than what a buyer can afford because let’s face it, they make more money on these loans. You need to figure in cost of living, utilities, and emergencies.

Getting Pre-Qualified

When you are pre-qualified for a loan, the sellers know that you are probably going to be able to get the mortgage and make your home buying go smoother. You will also be able to know the price range of homes you should be looking at so you don’t waste your time on homes that are out of your price range. A pre-approval is still a loan that will have to be processed but it states that if your current situation has gone unchanged, you will be able to get the loan you apply for.

Get Your Credit Under Control

Make sure that any debts you have outstanding are paid for or at least under control before you start applying for loans. If you have a bad debt on your account, fix it before you begin. If you have a good credit history, you will be able to make a choice in loans. If you have poor credit, you may be stuck with the loan that is offered, high interest and all. Don’t skip payments and by all means pay off the smaller loans that can affect your score.

Select Your Mortgage Package

Your broker will have an idea on what loans you may qualify for. If you want to keep a little cash on hand, you should look for a loan with little to no down payment that will have to be handed over up front. Let your lender know what it is you are looking for and they will find you the best deal possible.

First Time Home Buyer Mortgage Loans

First Time Home Buyer Mortgage Loans
First Time Home Buyer Mortgage Loans

Buying a Home With First Time Home Buyer Mortgage Loans

Buying your first home is a great time full of excitement and even fear. The process of buying your first home is unfamiliar and can be a bit intimidating. There are several mortgage loan programs available and it is important to know the difference between first time home buyer mortgage loans before signing on the dotted line. You should also know what factors can increase or even decrease your chance of getting a great rate.

What is Your Bottom Line on First Time Home Buyer Mortgage Loans

Many first time buyers end up purchasing a home that is out of their price range and they can’t afford it. Many people make the wrong assumption. Just because first time home buyer mortgage loans are approved does not mean you can actually afford the monthly payments. Lenders do sometimes approve loans that are higher than what a buyer can afford because let’s face it, they make more money on these loans. You need to figure in cost of living, utilities, and emergencies.

Getting Pre-Qualified For First Time Home Buyer Mortgage Loans

When you are pre-qualified for a loan, the sellers know that you are probably going to be able to get the mortgage and make your home buying go smoother. You will also be able to know the price range of homes you should be looking at so you don’t waste your time on homes that are out of your price range. A pre-qualification is still a loan that will have to be processed but it states that if your current situation has gone unchanged, you will be able to get the loan you apply for.

First Step For First Time Home Buyer Mortgage Loans

Make sure that any debts you have outstanding are paid for or at least under control before you start applying for loans. If you have a bad debt on your account, fix it before you begin. If you have a good credit history, you will be able to make a choice in loans. If you have poor credit, you may be stuck with the loan that is offered, high interest and all. Don’t skip payments and by all means pay off the smaller loans that can affect your score.

Select Your First Time Home Buyer Mortgage Loans Package

Your broker will have an idea on what loans you may qualify for. If you want to keep a little cash on hand, you should look for a loan with little to no down payment that will have to be handed over up front. Let your lender know what it is you are looking for and they will find you the best first time home buyer mortgage loans possible.