Getting a new house is not an easy task to accomplish considering the high prices and the various procedures needed to be carried out to buy a house. A new buyer will find it very difficult to understand all the concepts involved in the real estate business that are relevant for buying a new house. It is important to get a hang of all the technical terms in order to completely understand the financial and legal matters involved in buying a new house.
There are various sources that will provide you with a guide to the different terms used in real estate business but understanding all the concepts in detail will take some time. It is not always possible to get all the information related to this area since there are too many variables involved in real estate. Some of the terms and their description are provided below for your understanding so that you can be aware of the major terms and their importance while making real estate deals.
Appraisal refers to the process of evaluating the value of a property. This will help you determine the actual value of the property you want to purchase for building your home or making an investment for the future.
The smaller periods that make up the entire duration for which the loan taker plans to repay the mortgage taken on the house is known as amortization. This is the division of the total loan policy duration that can be referred to as terms. For e.g. a loan can be amortized for duration of 2 years to repay a loan taken for a period of 14 years.
The agent for the buyer works for the buyer through a real estate agency. It is common for buyer agency to get into a working relation that benefits both the parties. The buyer is assisted by the agent during the course of the duration as decided in the agreement. The agent gets monetary benefits if the buyer agrees to a house deal through the agent.
A mortgage is essentially a house loan for the property that you aim to purchase. This is done by providing the deed of the house to the financial institution.
The agent of the seller is one that works for the benefit of the seller. The focus of the agent in this case is to sell the house that belongs to the seller.
