Wednesday, November 26, 2008

Simplified Home Buying Process

Home Buying Process:
Determine Affordability -> Prequalify -> Lock down Rates -> Search & Find Home -> Loan Approval -> Make Offer -> Closing -> Move In

Carolina Home Pros Real Estate Team can help with your Charlotte Real Estate search.

Terms to be familiar with:

  • MONTHLY TOTAL EXPENSES - The total when monthly housing expense is added to monthly debt service
  • PREQUALIFICATION - act of going through the mortgage application process before the borrower is ready to borrow, to establish how much money the borrower could obtain under a loan.
  • RATE LOCK - Lenders will frequently give your buyer clients a set rate of interest that, until a certain date, is guaranteed not to rise. This is called an interest rate lock.
  • LOAN APPLICATION - The form completed by a potential borrower which provides information the prospective lender requires to assess the borrower's suitability for a loan
  • COMMITMENT - A promise, usually in writing, to provide a mortgage or other loan. May also be used in insurance field. Sets out details of mortgage, insurance. Often referred to as Commitment Letter or Binder.
  • OFFER AND ACCEPTANCE - Components of a contract, applicable to the real estate situation where a Purchaser may make an offer on a property and the Vendor may accept that offer.
  • CLOSING - The culmination of any transaction in which the interested parties (or their representatives) meet to exchange documents, funds, and property and, if necessary, to register the transfer of title
  • POSSESSION - The state of occupying, controlling, using property to the exclusion of all others, exhibiting one's right or title to property.

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