An aspiring homeowner ’ s guide to real estate terms
Equity : The percentage of a property ’ s value owned by the homeowner ( its market value minus the amount still owed on it ).
Foreclosure : A legal process that allows a lender to recover money owed on a defaulted loan by taking ownership of the property and selling it .
In escrow : A period of time after a buyer makes an offer and the seller accepts during which the property is transferred to a third party until the transaction is complete .
Lien : A legal claim to a property if the owner defaults on mortgage payments or has unpaid tax debt .
If you ’ re looking to buy your first home , you might feel a little overwhelmed by all the real estate lingo being thrown your way . Here ’ s a short glossary of some common terms to get you started .
Amortization : The process of gradually paying off your mortgage with regular payments .
Appraisal : The process of determining how much a property is worth , typically used by a lender to decide how big your loan should be .
Comparables : A list of recently sold properties in the area that can be used to determine the market value of a similar property , also known as comps .
Contingency clause : A condition or action that must be met in order for a purchase offer to become binding .
Deed : A legal document that states the official owner of a property , also called a transfer .
Maturity date : The last day of a mortgage term , at which time the loan must be repaid in full or a new agreement must be reached .
Principal : The amount borrowed from a lending institution . In mortgage payments , this doesn ’ t include interest .
Title insurance : A policy that protects a homeowner against challenges of ownership to a property or other problems related to the title of a home .
Remember , a real estate agent can be an invaluable ally when it comes to navigating the language and processes of buying a home .
76 MoultrieScene JANUARY 2022