Do you know the lingo? When a realtor or loan officer starts talking about buying a home, do you wonder what they are saying? Some of it makes sense, but there are times we talk about a 1003, a CD, an inspection, etc and buyers start to wonder what we mean!
Here are a few words we use:
1003 – this is the mortgage application
CD – this is the closing disclosure you will sign before closing with the terms of the mortgage and the amount you need at closing.
Inspection and appraisal – two different things! The inspection is the home inspection you do to make sure there aren’t any issues with the home. The appraisal is ordered by your lender to make sure the value is there.
Closing costs, prepaids and down payment – the closing costs are the cost of the mortgage, the prepaids are your first year of insurance, setting up your escrow account for taxes and insurance and interest, the down payment is the money you need to put down on the home.
Closing – this is the day you sign all the papers to buy your new home!
There are lots of other terms we use, but if you are confused when you are talking to your lender or realtor stop them! Ask what they are talking about. Sometimes we forget that not everyone uses the same words we do! Buying a home should be a fun experience, not a confusing one!! Make sure you ask questions if you do not understand something!
Leslie Vanderwerf, NMLS ID#335509, AMEC Home Loans, An Equal Housing Lender, NMLS#150953 – Email – Website
