Valerie's Belfair WA Real Estate Blog: "Terms" to know when taking the plunge! Part IV - Mason County WA Real Estate

Past blogs, we have been discussing taking the "plunge"into the real estate world of purchasing a home or property.  We are building a "team" of professionals to achieve this goal.  You have spoken with a lender and you have found a professional, knowledgeable lender local to the area you are searching for a home in and are ready to move to the next step.

It's important you are familiar with some of the "key" terms that you are going to come across.

What is the difference between pre-qualified and pre-approved with a lender?

Pre-qualification is a "probability" of being able to obtain a loan and is based on info you provide the lender as far as your income, debt, expenses and cash you currently have. A pre-qualification does not carry as much weight with an offer as a pre-approval does.  

Pre-approval- takes it further. It means that the lender has verified your information and this step carries better attraction to a seller who is contemplating an offer from you.

If you remember, I asked that you work with a lender towards pre-approval.  Very Important! I have many lenders I can refer you too if you do not have one you are already working with.

What is earnest money?

It is a "good faith" deposit submitted with your offer to let the sellers know that you are serious about purchasing their home.  It also has another reason, but we will discuss that when we sit to write an offer on a property. There is no set amount required for earnest money, but it is required and can make a difference depending on the dollar amount of your earnest money, as to how a seller considers your offer.

What are closing costs?

There are buyers closing costs and sellers closings costs. They consist of charges paid for various items during the process of closing a real estate transaction. Things such as escrow fees, lender fees, inspection fees etc. Your lender will tell you your loan fees and other fees involved we will discuss during our initial sit down chat.

What is a point?

This is lender related and one point is equal to one percent of the loan principal. Again, your lender will go into the specifics of points. It will vary among lenders and lender products as to the amount of points that you may be required to pay in addition to interest and fees at closing.

What is title insurance?

In a nutshell - title insurance protects against a loss from defects, liens and other adverse claims  that are against the property. Lenders will require title insurance. Again, we will go more into detail during our conversations.

Those are just a few of the many new terms you will hear throughout our process of taking the "plunge" into the real estate world!  I look forward to helping you achieve this goal as we take the next step! 

 

A few other links with more information on the buying process :

There's more than you think to buying a home...

Taking The Plunge Can be Scary and Overwhelming

Taking the Plunge - Part II - Buying a Home

Building The Team to Home Ownership - Part III

 

If you would like more information on buying or selling homes in Belfair, WA~Mason County~ give me a call, drop me a line or visit my website!  I would love to be a part of your team to help you successfully achieve your real estate goals!  YOUR SUCCESS IS MY SUCCESS! People and homes are my specialty.

I believe in building relationships for life. My success is your success!

~~Valerie~~

Associate Broker

Windermere Peninsula Properties

360-710-5622

 

 

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