PRE-APPROVAL

What is a pre-approval? A pre-approval is a statement from your lender that says you are qualified to borrow up to a certain amount. This statement also includes a pre-approved interest rate, though this number can definitely change depending on how soon you put an offer on a home since mortgage rates can fluctuate. To come up with this promised loan amount, your lender will take in to consideration your debt to income ratio and your credit score.  

Providing your pre-approval letter to your realtor prior to viewing homes in person is a great way to narrow down your searches and find the perfect home for you. 

​

HOME WARRANTY

A home warranty is a service contract that covers the cost of maintaining household systems or appliances, for a set period of time. They are most often advised when purchasing an older home for which information is not readily available on the items. 

​

APPRAISAL

An appraisal is a written estimate of the value of something.  In real estate, an Appraiser provides a professional opinion of the market value of the property.

 

BUYERS AGENT

A buyer's agent is someone who acts on behalf of, and represents the buyer in a real estate transaction. ​

 

CLOSING COSTS

When you purchase or sell a property, there are costs outside of a property's sale price that must be paid in order to cover the cost of the transaction.  Fees such as origination fees, discount points, insurance fees survey fees, and attorney's fees. 

​

CLOSING (SETTLEMENT) STATEMENT

Also called HUD-1 Statement or settlement sheet is a form used in a real estate transaction that itemizes all the costs to the buyer and the seller. 

 

DOWN PAYMENT 

A down payment is a portion of the sale price that you as the buyer pay to the seller to close a sale, with the understanding that the balance will be paid at settlement.  It is also the difference between the sale price of real estate and the mortgage amount.