Real Estate Terminology Explained
If you are new to the mysterious world of real estate, it can seem a bit confusing, with many terms and acronyms, and in order to gain a deeper understanding, here are a few real estate terminologies that you should know. If you are planning to enter the real estate industry, then you must know about the terminologies.
Let’s see first what is real estate terminology.
What Is The Meaning Of Real Estate Terminology?
Real estate is considered real property that includes land and anything which are permanently attached to it or built on it. The five main categories of real estate properties include residential, commercial, industrial, and simple farming land. These are the types of real estate properties.
The real estate terminologies all include some specific parts which are related to real estate property dealing. The real estate terminology is included a simple chain process of property handovers.
These handovers can be sales purchases else. It also can be rental agreement properties. Every person who is attached to property dealing comes under the real estate terminology.
Here are the parts of the real estate terminologies. Read it and know how every component of the terminology is functioning.
1. Borrower
In real estate terminology, a person that takes out a mortgage from a lender also comes under.
2. Pre-approval
When a person wishes to take out a mortgage, they can first obtain pre-approval, which means that, based on the information provided, the lender is prepared to loan to the borrower. If you do not have mortgage pre-approval, sellers will not take you seriously unless, of course, you are a cash buyer.
3. Lender
The bank/mortgage lender. If you are planning to sell your home, check out online house appraisals from PropertyPricer to give you an accurate valuation.
4. Listing Agent
This is the real estate agent that is offering the property. The listing agent comes under commercial real estate terminology.
5. Delinquency
This describes missed mortgage payments; indeed, a single missed payment is counted as delinquency.
6. Principal
The principal is the amount of money owed minus the interest. Click here for romantic getaway spots where you should buy real estate.
7. Second mortgage
This is a loan taken out using the property as collateral. The real estate investing terminology is also part of the second mortgage, which comes under the real estate terminology.
8. Co-borrower
When more than one party comes together to apply for a home loan.
9. Title
A title is the concept of ownership, whereas deeds are the actual paperwork that shows ownership.
10. Under contract
When both buyer and seller have agreed on terms, the sale is ‘under contract.
11. Foreclosure
When a borrower defaults on payment, the lender can foreclose or repossess the property, which they can sell to recover the debt.
12. Fixed-rate mortgage
This is a home loan where the rate of interest is fixed for the duration of the term. This means the rate cannot be changed, and for some people, this is preferred over a varying-rate mortgage.
13. Equity
This is the portion of a property that is owned by the borrower; it is possible to borrow more based on the amount of equity you have.
14. Exclusive listing
When the seller agrees to use only one real estate agent to sell the property.
15. Buydown
In real estate terminology, a buydown is when the borrower pays a premium for a lower interest rate. This is ideal if you think your income will increase in the future.
Whether you are buying or selling, the real estate market is an exciting place, and we should always remember that real estate is a finite commodity and, therefore, a good long-term investment.
Wrapping It Up:
Real estate terminology is a simple process by which you can develop a real estate property buying and selling chain. Every person who is attached to the deal comes under these terminologies.
Unless you are not aware of the property dealing chain process, you cannot get a good deal yourself. And all these parts are the components of real estate terminologies.
Read Also:
