Being Prepared BEFORE SELLING OR BUYING A HOME: How can you be prepared before deciding to take the big plunge in buying or selling a home.
These words will guide and help you along the way.... you will become efficient when making the big decision to purchase or selling your home.
Appreciation: An increase in the value of a property due to changes in market are to help you:
Adjustable rate Mortgage(ARM): Mortgage loans in which the interest rate is adjusted periodically based on predetermined factors such as an assigned index or designed market factor.
Abstract title: A condensed version of the title history to a piece of land or property. Lists and transfers in ownership and any liabilities attached to it such as mortgages.
Annual percentage rate(APR) An interest rate reflecting the cost of a mortgage as a yearly rate. Because it takes into account points and other credit costs,the APR is likely to be higher than the mortgage rate.It is basis of comparison for mortgage loan costs.
Appraisal, Appraised Values: An appraiser's estimate of the value of the value of the property, Banks require appraisals to determine how much money it will lend you.
Back-end - Ratio: The amount you pay in monthly debts divided by your gross monthly income.
Balloon payment mortgage,term mortgage: A short -term fixed-rate loan which involves small payments for a certain time period and then one large payment) The balloon Payment,for the remainder of the loan) at a predetermined date.
Bill of sale: A written document that attests the transfer of the ownership(title) of personal property.
Call Option:a clause in the mortgage that gives the lender the right to "call" th mortgage due and payable at the end of a given length of time, for whatever reason.
Capital expenditure: The cost of an improvement made either to extend the life of a property or to increase its value.
Closing Costs: Expenses incurred by buyers and sellers is transferring ownership of a property, such as an origination fee, taxes, title insurance.transfer fees,points,title charges,credit report fee,document preparation fee, mortgage insurance premium, inspections,appraisals,prepayments for property taxes, deed recording fee,and homeowners insurance.
Construction loan ( interim Loan):A loan to provide the funds necessary to pay for the construction for buildings or homes. The lender advances funds to the builder at periodic intervals as the work progresses.
Cooperative(Co-op): Residents for Co-op housing complexes own shares in the cooperative corporation that owns the property. Each resident has the right to occupy a specific dwelling,but they don't actually own it-they own shares in the corporation that owns it.
This is part 1... Keep looking out for Part 2...... to be continue......
.Being Prepared BEFORE SELLING OR BUYING A HOME
words: Hgtv.com/article
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