Anybody looking to list their own homes for sale in Green Bay and N.E. Wisconsin is bound to run into a litany of confusing real-estate specific terminology that they probably haven’t heard of before.
Thankfully, this is where a qualified real estate agent comes in. They will not only walk sellers through any confusing terms but also use their knowledge and expertise to steer the process step-by-step so that nothing falls through the cracks.
That said, having a little background knowledge regarding all that common real estate jargon is certainly not going to hurt either. Keeping that in mind, this article is going to cover some common terminology that buyers are likely to encounter when dealing with houses for sale in Green Bay and N.E. Wisconsin. Be sure to read on to find out more.
Adjustable-rate mortgages, otherwise known as ARMs, are a type of mortgage that typically offers a lower initial rate, which will defer to a variable specified index rate after a set number of years.
These types of mortgages are most commonly chosen by buyers who are interested in choosing a shorter-term investment, and the repayment rate will often vary from anywhere between 5 to 10 years.
The term amortization refers to a mortgage repayment schedule and factors in both principal payments and interest payments.
An amortization schedule is a useful table that efficiently displays the total amount of interest and principal included in each payment as well as the remaining loan balance.
An appraisal is an official estimate of the value of any given homes for sale in Green Bay and N.E. Wisconsin.
Most banks will require an official appraisal of any houses for sale in Green Bay and N.E. Wisconsin before issuing a mortgage, and this appraisal must be conducted in writing by a professional appraiser.
These mortgages tend to be the most practical option for most homebuyers since predictable rates allow for easy budgeting in the future. These conventional loans feature a pre-determined agreed-upon interest rate, which will stay locked in for the duration of the entire repayment period.
Most fixed-rate mortgage contracts are 30-year mortgages, but they can also be 15 or 10-year mortgages as well.
These refer to any type of mortgage loans that are insured through the Federal Housing Administration.
These loans are often a great option for anybody with a lower credit rating or having less money to put down for a down payment since they offer good financing rates coupled with more flexible requirements than conventional adjustable or fixed-rate mortgages. In exchange, buyers will have to pay to cover both an annual and an upfront insurance premium on the loan.
Points are units used to calculate the amount of interest on a loan, with one point equalling one percent of the total amount of the loan. Long-term buyers might prefer to pay a certain amount of points upfront so that they can secure a lower fixed interest rate.
A pre-approval is a lender’s written guarantee to grant a loan up to a certain amount of money, while a pre-qualification is an official estimate of the amount that a buyer could be eligible to borrow.
Pre-approvals are used to assure sellers of a potential buyer’s ability to follow through on the purchase, while a pre-qualification will give buyers a better idea of what types of houses for sale in Green Bay and N.E. Wisconsin falls into their budget range.
Private Mortgage Insurance Contracts
Private mortgage insurance is otherwise known as PMI and is commonly required on loans that feature a down payment of less than 20 percent of the purchase value.
Real Estate Terminology
These refer to the values of homes for sale in Green Bay and N.E. Wisconsin as assessed by a governing authority. Property taxes and fees are calculated in accordance with the assessed value amount.
These are incidental fees associated with closing the deal on a property purchase.
They may include a credit report, attorney, document preparation, deed recording, appraisal, or any other relevant fees for services conducted while negotiating the purchase of houses for sale in Green Bay and N.E. Wisconsin.
Contingencies are specific conditions that have to be met before a real estate transaction can be officially closed.
Some common contingencies are home inspections, conditions requiring buyers to sell their current homes for sale in Green Bay and N.E. Wisconsin before completing the deal or financing contingencies that release buyers from the contract in the event that their mortgage cannot be executed as planned.
Home inspections are both a common and recommended step when it comes to marketing houses for sale in Green Bay and N.E. Wisconsin.
This thorough inspection will ensure that the mechanical components of the structure, like, for example, the foundation, the plumbing, the HVAC system, the roof and the electrical systems are all in satisfactory condition.
Listings are printed descriptions of property or homes for sale in Green Bay and N.E. Wisconsin.
They are designed to give a buyer an idea of the basic features of the property, including the number of rooms, any other structures included in the purchase and the asking price. They also will typically feature photos of the property itself.
Sales Contracts (Purchase Agreements)
These contracts refer to an official legal agreement between buyers and sellers that ensures the purchase transfer of homes for sale in Green Bay and N.E. Wisconsin. Sales contracts are typically drawn out for a limited time period, which is commonly referred to as a binder.
It is presented to the seller as a sales offer and only becomes a sales contract after this offer, or a counter-offer is accepted.
When it comes to navigating the complicated ins and outs of purchasing houses for sale in Green Bay and N.E. Wisconsin, there is nobody more qualified to guide the process than a certified local real estate professional, so be sure to reach out to find out more.