Your Real Estate Vocabulary Cheat Sheet
If you've ever been through the home buying process before, you've probably noticed a large amount of words and acronyms that get tossed around. Buying your first home is already filled with many new things to learn and decisions to make, and can be made even more challenging if you don't know the lingo. The MacGuire team knows how overwhelming it can be to buy your first house, especially if you're relocating to Colorado Springs, so we want to make it easier on you and your family. Here are a few words you'll probably hear through the lending and buying process, as well as their meanings so you aren't caught off guard.
Pre-Approval
When you start the home buying process in Colorado Springs, one of the first things you'll want is to get pre-approved. This is an evaluation by a lender that can determine whether you will qualify for a loan. It also helps to show what the maximum amount the can qualify you for.
Adjustable Rate Mortgage (ARM)
In an adjustable rate mortgage, the interest rates are occasionally updated so that they match the current market interest rates.
Annual Percentage Rate (APR)
This is the cost of a mortgage as a yearly rate. It includes all costs like interest, mortgage insurance, and loan origination fees.
Back-End Ratio
This is the ratio of all fixed debt, and it includes housing expenses to gross income.
Escrow
Your mortgage company will put an escrow account in place to pay property taxes and insurance during the term of the mortgage.
Private Mortgage Insurance - PMI
If you have a downpayment of less than 20%, the lender requires a PMI. It protects your lender from losing money if you end up in a foreclosure.
Homeowner's Insurance
Combined property and liability insurance designed for residential property owners.
Lien
This holds your property as security for the payment of a debt.
Market Value
The market value of your home is the amount it can be sold during the current real estate market in Colorado Springs.
Fix Rate Loan
If you want a loan whose interest rate never changes during the life of your loan - this is what you want.
Colorado Springs Real Estate
Don't feel like you have to buy a Colorado Springs home on your own. There are many details, unexpected complications, and red tape that your buyer's agent in Colorado Springs can assist you with. The MacGuire team has been buying a selling Colorado Springs homes for over 25 years, and we would love to add our experience to your next real estate purchase. You can visit our website to learn more about our selling strategies and buying processes. Make sure to follow our social media channels as well so you can see new listings and get some great tips for your real estate journey.
When you start the home buying process in Colorado Springs, one of the first things you'll want is to get pre-approved. This is an evaluation by a lender that can determine whether you will qualify for a loan. It also helps to show what the maximum amount the can qualify you for.
Adjustable Rate Mortgage (ARM)
In an adjustable rate mortgage, the interest rates are occasionally updated so that they match the current market interest rates.
Annual Percentage Rate (APR)
This is the cost of a mortgage as a yearly rate. It includes all costs like interest, mortgage insurance, and loan origination fees.
Back-End Ratio
This is the ratio of all fixed debt, and it includes housing expenses to gross income.
Escrow
Your mortgage company will put an escrow account in place to pay property taxes and insurance during the term of the mortgage.
Private Mortgage Insurance - PMI
If you have a downpayment of less than 20%, the lender requires a PMI. It protects your lender from losing money if you end up in a foreclosure.
Homeowner's Insurance
Combined property and liability insurance designed for residential property owners.
Lien
This holds your property as security for the payment of a debt.
Market Value
The market value of your home is the amount it can be sold during the current real estate market in Colorado Springs.
Fix Rate Loan
If you want a loan whose interest rate never changes during the life of your loan - this is what you want.
Don't feel like you have to buy a Colorado Springs home on your own. There are many details, unexpected complications, and red tape that your buyer's agent in Colorado Springs can assist you with. The MacGuire team has been buying a selling Colorado Springs homes for over 25 years, and we would love to add our experience to your next real estate purchase. You can visit our website to learn more about our selling strategies and buying processes. Make sure to follow our social media channels as well so you can see new listings and get some great tips for your real estate journey.
Mike MacGuire
Colorado Springs Real Estate Agent
The MacGuire Team
6760 Corporate Dr
Ste 300
Colorado Springs, CO 80919
719-536-4324 or 719-660-6793
Mike@BuyWithMike.com
Comments