Buying a property, you can call your home is an exciting and fulfilling moment of your life. However, navigating the world of real estate and figuring out the entire homebuying process all on your own can be confusing, especially if you are unfamiliar with the technical terms involved.
Essential Real Estate Terms
To help you understand the entire homebuying procedure and let you plan your move right away, our team of mortgage brokers in Los Angeles compiled some of the most essential real estate terms you should get familiar with. These include the following:
- Listing – A listing simply means a property is advertised. This includes a complete description of the property for sale and its other important information, including the price, square footage, number of beds and bathrooms, and photos. As a homebuyer, the details indicated in the listing can help you look for your ideal home.
- Private Mortgage Insurance (PMI)- Private Mortgage Insurance, commonly referred to as PMI, refers to the insurance you are required to pay monthly when you default on the loan, the foreclosure sale price is less than the amount owed the lender, and you are only able to make less than a 20 percent down payment of your property’s purchase price. It protects your lenders against loss.
- Home mortgage- A home mortgage is a loan provided to you by a lender, such as a mortgage company, a bank, or other financial institution. They help you purchase a residential property, such as a primary residence, a secondary residence, or an investment residence. It involves transferring the title of the home to your lender, and it will be transferred back to you as soon as you pay your loan in full and you meet other terms of the mortgage.
- Home inspection- A home inspection involves a complete and thorough inspection of the property you are planning to buy. It helps you check and assess the overall safety of the structure and mechanical condition and other aspects of the house, including its foundation, plumbing, electrical and more. During this phase, you can hire a professional home inspector to assist you in evaluating the true condition of the home you want to purchase and prevent you from getting costly repairs in the long run. They check areas of the property beyond what you can see with your naked eyes and identify potential issues.
- The Homeowners’ Association (HAO)- The Homeowners’ Association is an organization that manages the common areas of your neighborhood. They create and enforce rules and regulations to ensure a harmonious relationship in the community and improve the quality of life of everyone. Also, they are responsible for collecting monthly dues for the maintenance and repair of the pool, fence, garden, parking area, and more.
- Closing – Closing is the last step in the homebuying process. It takes place when the sale is completed: when you already signed the paperwork and you transferred the funds.
Shannon Christenot is Your Los Angeles Mortgage Broker
Purchasing a home is much easier when you are familiar with the various technical terms used in real estate, such as the ones listed above. After knowing the different jargon, you can count on our mortgage company in Los Angeles to help you have a smoother, more hassle-free homebuying process.
If you are looking for the best mortgage company in Los Angeles, then you’ve come to the right place. The team is headed by Shannon Christenot, a mortgage broker who has more than 20 years of experience in home loans and holds licenses from NMLS and BRE. Contact them at (818) 601-2231 for a free mortgage quote!