Examples of closings costs include loan processing costs, title insurance, and excise tax. In addition to the final price of a home, there are also closing costs, which will typically make up about two to five percent of the purchase price, not including the down payment. At the closing, buyers and sellers sign the final documents, and the buyer makes the down payment and pays closing costs. The closing refers to the meeting that takes place where the sale of the property is finalized. The cash reserves is the money left over for the buyer after the down payment and the closing costs. On the other side is the listing agent, who represents the seller. This is the agent who represents the buyer in the home-buying process. This is how much a home is worth according to a public tax assessor who makes that determination in order to figure out how much city or state tax the owner owes. The appraiser will determine the value of the home based on an examination of the property itself, as well as the sale price of comparable homes in the area. In order to get a loan from a bank to buy a home, you first need to get the home appraised so the bank can be sure they are lending the correct amount of money. This allows you to build more equity in the home early on. This is the process of combining both interest and principal in payments, rather than simply paying off interest at the start. For homeowners who plan to stay in their home for more than a few years, this is a risky loan as rates can suddenly skyrocket depending on market conditions. In an adjustable-rate mortgage, the interest rate can change over the course of the loan at five, seven, or ten year intervals. There are two types of conventional loans: the fixed-rate and the adjustable-rate mortgage. The following real estate glossary is a handy reference for aspiring real estate agents, nervous home buyers (or sellers), or anyone who's curious about the industry. This article lists definitions on frequently used real estate lingo in NH and covers only some introductory terms.Every industry has its own jargon, and real estate is no different.įrom adjustable rate mortgages to title insurance to amortization, it can all seem like a confusing word salad for those new to the business.īut don't worry-we've compiled a list of the 29 most common terms you're likely to encounter. Purchase agreements typically note a closing date and location. ClosingĪ closing is when documentation is completed, funds are exchanged, and a home legally changes hands from one person to another. Deposits are almost always retained by a listing broker for a seller and given back to a buyer at closing. Earnest MoneyĮarnest money applies to deposits submitted by a buyer with a contract to purchase a home. Other common contingencies are for completion of an inspection and receipt of a home loan commitment. For instance, the purchase could be conditioned upon the sale of their existing home. Agreement Items ContingencyĪ contingency is something required for a party to move forward with a home sale or purchase. It allows a buyer to preview a home and to verify that the condition has not changed from the last time the buyer viewed it.

Walk-thrus typically take place immediately before settlement. Assessed valuation has no bearing on the market value of a home. Assessed ValueĪssessments are the value assigned to properties by a public tax assessor and used to levy property taxes. The general public is not granted login permission to this information but can obtain access through allowed parties. Different areas usually have separate MLS networks, and some regions can have multiple ones. This is a system where members of the MLS enter homes for sale. MLS refers to the Multiple Listing Service.

It traditionally provides a price range given the existing economy. Frequently Used Real Estate Lingo In NH CMAĪ CMA is a report that evaluates your home to homes with similar features that sold recently in the same neighborhood. This will help clarify the buying and selling process. In this article you will find definitions on frequently used real estate lingo in NH. Real estate lingo can complicate it further, particularly if it is your first time purchasing a home. The home buying and selling process is complicated enough to start with.

Real estate lingo listing