Closing costs are fees paid when you close on a mortgage loan. Typically, closing costs equal 3% to 5% of your total home loan balance. Appraisal fees, attorney’s fees, and inspection fees are examples of common closing costs. Closing costs are usually comprised of between 2-5% of the total purchase price of the home.
A co-borrower is any additional borrower whose name appears on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have an obligation to repay the loan.
Most real estate agents make money through commissions, or payments made directly to real estate brokers for services rendered in the sale or purchase of a property. A commission is usually a percentage of the property’s selling price, although it can also be a flat fee.
If you pay a monthly fee towards a Homeowners Association (HOA), part of that fee likely goes toward a common area assessment to maintain an area open to the community.
Community property refers to property acquired by a married couple and owned equally by both spouses.
Comparable sales, also known as comparables or comps, is a real estate appraisal term referring to properties with characteristics that are similar to a subject property whose value is being sought.
A construction loan, or self-build loan, is a short-term loan used to finance the construction of a home or real estate project. This type of loan covers project costs before long-term funding can be financed.
Contingent simply means “depending on certain circumstances.” In real estate, when a house is listed as contingent, it means that an offer has been made and accepted; however, before the deal is complete, some additional criteria must be met.
When a property is contingent, it means the owner has accepted an offer, but certain contractual expectations must be met or the offer will be void. If all contingencies are met, the property changes status to “pending.”
A conventional mortgage is a loan that’s not backed by a federal government agency. Instead, conventional mortgages are available through private lenders, such as banks, credit unions, and mortgage companies. Conventional loans are broken down into conforming and non-conforming loans.