6 Real Estate Terms Every Candlewood Lake Home Buyer Should Understand
Buying a Candlewood Lake and Lake Lillinonah property is probably the biggest financial transaction that you will make. That is why doing it right the first time is so important. Typically, buying a house can feel like a dizzying set of rules and regulations. Without the right knowledge, the home buying process can become even more complicated.
Here are some real estate terms that every buyer should be familiar with to better understand the goings-on in a real estate transaction:
A contingency, also known as a condition, is a provision in a real estate contract that indicates that the contract would cease to exist upon the occurrence of a certain event. It is an essential clause in the contract as it gives the buyer the power to opt out of the transaction or delay if certain conditions are not met or if the terms are deemed unsatisfactory. Real estate contracts have several normal and common contingencies involved.
- Buyer Agent
A buyer agent is a real estate agent who represents only the buyer of a property in a real estate transaction. Under a formal contract, a buyer agent agrees to exclusively represent the best interest of the purchaser. The buyer agent is expected to negotiate the best sale price for the property, research the surrounding neighbourhoods and school, ensure the property is inspected, and perform necessary due diligence. As a buyer, you need to choose an agent who is has unquestionable experience in dealing with Candlewood Lake real estate.
- Fixed rate mortgage
A fixed rate mortgage is a mortgage that has fixed interest rate for the entire term of the loan. In other words, the interest rate of your loan will remain the same until the contract matures or after an agreed upon time frame. This type of mortgage allows the buyers to know exactly how much to shell out for the monthly payment. They do not have to contend with varying loan payment amount that fluctuate with interest rate movements.
- Closing costs
Closing costs refer to the expenses over and above the price of the property in a real estate transaction. These costs are incurred upon the transfer of ownership of the property from the sellers to the buyer. Typically, these include fees and charges for the surveyor, attorney, escrow, appraisal, credit report, loan origination, and title insurance.
An appraisal is a valuation of a real estate property made by licensed appraisers to know how much the home is worth. The appraisal is a written analysis and takes into account factors like the condition of the home, the value of similar Candlewood Lake homes, the property’s location, how well-maintained it is, and if upgrades are done. The appraiser can use any number of valuation methods to determine the appropriate value to assign.
- Title Insurance
The title insurance is an important document that insures the protection of either the seller or the buyer in case there is an illegal defect in the property’s title. It is required if the property is under mortgage. The most common type of title insurance is a lender’s title insurance, which is paid for by the borrower but protects only the lender.
Knowledge of these words and terminologies will make your real estate transaction experience easier and less complicated. Check out www.CandlewoodLakeHomesforSale.com today to see the latest real estate listings in the area.