Maria Acuna Real Estate



Posted by Maria Acuna Real Estate on 1/16/2020

If you’re planning on buying a home in the near future and are confused about many of the terms associated with mortgages, you’re not alone. Real estate is its own industry with its own set of processes, terms, and acronyms. If you’re new to the home buying process, there can be somewhat of a learning curve to understand what each of these terms means.

Since buying a home is such a huge investment and life decision, there’s a lot of pressure on home buyers to make sure they get everything right. This makes for a stressful situation for buyers who don’t feel like they understand the terminology of things like mortgages, appraisals, credit reports, and other factors that contribute to the home buying process.

To alleviate some of those concerns and to make the home buying process run more smoothly, we’ve compiled a list of the most common, and most commonly confused, real estate words, terms, and acronyms. That way, when you’re talking things over with your real estate agent or your mortgage lender, you’ll be confident that you understand exactly what’s being considered.


Read on for our real estate terminology glossary.

  • Adjustable rate mortgage (ARM) - This is one type of home loan. Mortgage rates with this type of loan fluctuate throughout the repayment term of the loan. The fluctuation is based on a market indicator.

  • Fixed rate mortgage (FRM) - Another type of home loan, a fixed rate mortgage has a rate which does not fluctuate, remaining constant for the life of the term, most commonly 15 or 30 years.

  • Appraisal - An appraisal is the determination of the value of a property. Appraisals are used when purchasing and selling a home, as well as when refinancing a home loan. Appraisers are required to be licensed or certified in each state and are usually paid for by the lender.

  • Appreciation - An increase in a property’s value, most commonly due to market inflation, or the general increase in home prices over time.

  • Depreciation - A decrease in a property’s value, due to either market deflation (uncommon) or the wear and tear on a home that comes with age.

  • Closing costs - The costs and fees that a buyer is responsible for when purchasing a home or taking out a mortgage. These include underwriting fees, inspections, appraisals, transfer taxes, and more. Closing costs typically range from 2% to 5% of the total loan amount.

  • Contingency - Home purchases have contracts to protect the interest of the buyer, seller, and lender. Contingencies are provisions designed to protect the buyer or lender should something occur in the time leading up to closing on (or purchasing) the home. One common contingency is the buyer’s right to have a final inspection of the home before closing to ensure no new issues with the home have occurred.

  • Private mortgage insurance (PMI) - Buyers who cannot afford a down payment of %20 typically are required to take out a private mortgage insurance policy. This policy protects the lender should the borrower default (fail to repay or meet the conditions of their loan).






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Posted by Maria Acuna Real Estate on 9/19/2019

When looking to purchase real estate, you will have a lot of questions. That is where a real estate professional can help you out. Not only with the questions you currently have but with those things you did not even know to ask. At first, it may just be about the market in general. Is it time to buy? Is it time to sell? Or you may want to know about a new neighborhood or about buying raw land to build on. All those things need current and knowledgeable information: Information that your local real estate professional deals with daily. They know what the current market is doing, and they can get detailed information about specific neighborhoods so you can make educated decisions for you and your family. They can also provide you with county zoning requirements if you want to build or remodel. This information may change your mind about where you want to live.

Ask the locals

Real estate professionals are essential when looking to move into an area about which you have little or no knowledge. Not only do they provide information about the housing markets but most likely they are a member of the community and can provide you with everyday living information. They may be able to direct you to local farmer's markets, organic grocery stores or public dog parks. Professionals will also be able to point out to you what trends they see in the housing markets. Are there a lot of larger single-family units going on the market? Or are condominium developments grabbing most of the market sales in the area you want to live? They will know if home purchasers want RV-parking option or which homeowners associations do not allow it. They can also tell you what the area projections are for home values. 

You do not know what you do not know 

When it comes to the actual paperwork side of a real estate transaction, you will have peace of mind knowing that someone knows what all that legal jargon means and can explain it to you easily. They can also help you include any details in your offer or counteroffer that you may not have thought to add. When you work with a professional real estate agent, they can often have some insight into specific properties that can help you narrow your search. When you communicate in a personal and detailed way with them what you are looking for when buying or selling a property, your agent can serve you to the best of their ability.

Talk with a local real estate professional today to get a current market analysis of your home.




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