If you are considering buying a home in Atlanta youneedto understand the terminology being used. Check out ourguide to buyers lingo so you can feel like a pro even if youre a first-time buyer! Buyers Lingo 101 Abstract of Title This will basically give you a full paper trail of the propertys ownership. It will include property transfers inheritances liens encumbrances and conveyances. Adjustable Rate Mortgage Usually comes at a lowercost however the interest rate will vary depending on the market. Considered less stable than a fixed-rate mortgage. Amortization Schedule A table that shows your mortgage payment schedule outlining your principal and interest payments. Appraisal Done by a professional to help determine the value of your house. Assessed Value This is the value of your home as determined by the county for tax purposes. Balloon Mortgage A mortgage in which the final balance is due in one large payment at the end of the loan term. Bridge Loan A loan to cover a period of time in between two transactions. Typically the period between buying and selling a home. Caveat Emptor Latin for:Let the Buyer Beware. Basically at the end of the day you are assuming any risk involved in the transaction. Chain of Title A listof successive owners of a specific property. Closing Costs Miscellaneous charges you will need to payin addition to your downpayment. This might include loan origination fees title fees fees from the city to record the deed surveyors etc. Closing Statement This is a legally required document that itemizes credits and debits to both the buyer and seller. Comps A listof comparable sales in your area. Considered one of the best ways to determine a homes actual value and used by agents to create a Comparative Market Analysis. Contingency A provision in the contract canceling the sale should a certain event occur. For examplea house not appraising high enough to satisfy a lender. Conventional Mortgage This type of mortgage is not guaranteed by the federal government. They can be fixed or adjustable rate. Conveyance The transfer of property from one person to another. Debt-To-Income Ratio A comparison of what you owe each month to what you earn. Earnest Money Deposit Oftenused when a buyer needs more time to secure financing. It shows good faith and is typically help in a joint escrow account by the buyer and seller. Equity The market value of a property minus any liens. (Including your mortgage balance.) Escrow When an impartial 3rd party holds the deed or funds. FHA Loan Issued by a federally qualified lender and backed up by the Federal Housing Administration. Requires a lower down payment in comparison to a conventional mortgage. Good Faith Estimate Also called a GFE is provided by your lender when you are shopping for a loan. It breaks down the loan terms and fees. Inspection A service provided by a licensed inspector during the sale of a home. They inspect the foundation plumbing systems electrical work sewage system heating/cooling systems and the roof. Loan-to-Value Ratio A term commonly used by banks and lenders to show the value of the loan vs. the value of the home. Negative Amortization This is an increase to the principal balance of the loan caused by making payments that do not cover the loans interest. Origination The process of applying for a loan all the way to the disbursement of funds. Refinancing Getting a new mortgage to replace an old one. Usually done to provide a better interest rate to the buyer. Seller Contribution Instead of discounting the price of the home a seller will directly contribute to your costs or downpayment. Title Insurance This protects property owners and lenders from damage and loss. It is required if you have a mortgage on the home. Underwriting Determines the amount of risk a lender is taking on. Are there more terms you would like to see defined? Let us know! Looking to buy a property in Atlanta ? We can help you navigate the process! Send us a message now or give our office a call! 678-337-1165 The post Buyers Lingo 101 | Atlanta Real Estate | Fresh Start Home Sales appeared first on Fresh Start Home Sales. via Blog Fresh Start Home Sales https://www.freshstarthomesales.com/buyers-lingo-101-atlanta/