Real Estate Terms
Before you get involved with a real estate business there are a few concepts that you should understand. These could come in handy or even save you a fortune when it comes to buying or selling a real estate property. Those involved in the selling and buying are supposed to be accompanied by agents. A listing and buyer’s agent represent the seller and the buyer respectively. In a situation where there is only one agent representing the two this is known as a dual agency. Having a sole representative agent is actually a good idea.
Lenders could be an excellent opportunity for those who do not have money to purchase a home while those with enough funds can go on and buy the house of their dreams. When purchasing a home with loan money it is essential that one seeks a pre-approval letter. The letter should include the amount the bank is supposed to lend you. With this letter it is easy for an agent to show you the many homes from which you can choose from all which are in the range of your amount. It should, therefore, be clear that a pre-approval letter should go first to mortgage applications.
A property bought using loan money needs an appraisal first. An appraisal is a necessity by the lenders before you can go ahead and make a mortgage application. The constituents of an appraisal should include the survey and importantly the value estimate of the house. The buyer by this time should have paid for the inspection and have done away with. Things like electricity, plumbing, walls, foundation among other appliances should be inspected.
Then you have to know about contingencies. Whenever one is going to buy a house there are things that they say must be in the home they will end up buy; these things are what are referred to as contingencies. You have to discuss these contingencies with your agent and make sure that you set them right. Of the many contingencies that there are some are derived from what was mentioned above, and they include appraisal and inspection contingencies. There are also offers and contracts that need to be signed once you have placed your offer. If you can get an attorney then this is the point where their help would be very much needed. How you choose the real estate agent will matter a lot when it comes to making talks with a need to succeed.
It will take around one week after winning the negotiations before you can get the title report.