Buying a home is an involved process and it can be both exciting and confusing, too. Not only may you not be familiar with the process itself, but the real estate industry has many terms that are important to know that may be unfamiliar to you. Your First Weber agent is there to answer any questions you might have throughout the entire home buying process.
Here are a few real estate terms you should be aware of.
Easement: A right of way giving persons other than the owner access to or over a property.
Homeowner’s Insurance: An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.
Lien: A legal claim against a property that must be paid off when the property is sold.
Mortgagee: The lender
Mortgagor: The borrower
Amortization: The gradual repayment of a mortgage loan by installments with regular payments that cover both principal and interest.
Prequalification: The process of determining how much money a prospective buyer will be eligible to borrow, before they apply for a loan
Preapproval: A higher level of buyer/borrower prequalification required by a mortgage lender.
There’s an important difference between the last two terms. Not getting preapproved means not knowing for sure how much you can borrow. Don’t fall in love with a home you can’t buy!
For more on the homebuying process, please see our buyer category on the First Weber blog or contact a First Weber real estate agent in your area. Thank you for reading the First Weber Wisconsin real estate & Wisconsin living blog. photo credit photo credit http://www.flickr.com/photos/nikcname/4893848354/