If you are gearing up to buy a North Shore home for the
first time, or it’s been awhile since you have bought, you may need a quick
real estate lingo 101 course. As your North Shore real estate agent, I am here
to help! Here’s a rundown of the most common words you will hear as a buyer, so
when you go to purchase a home in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook, Lake Forest, Wilmette, Evanston, Glenview, Riverwoods, Bannockburn, and other North Shore communities, you’ll feel knowledgeable and
prepared!
Real estate agent – This is the professional who will help
you purchase a home. I am an agent on Chicago’s North Shore. I will help you
find homes for sale in the area, I will help you set up showings to see the
homes, I will help you negotiate a price and contingencies, I will help you
understand the paperwork, I can offer suggestions for other professionals you
need help from, etc.
Appraiser/appraisal – Once you have your offer accepted on a
home, you will have an appraisal done. Usually the bank with your mortgage loan
will require this to secure financing. It’s a professional analysis used to determine
the current value of the home. The appraiser is the person who completes the
appraisal.
Home inspection/inspector – A buyer should have a home
inspection done on a home before closing. This will allow you to know of any
issues with the home, such as with the foundation, electricity, plumbing, etc. The
inspector is the person who completes the inspection. If a lot comes up, you can
back out if there are too many expensive issues, or you can try to renegotiate
the price.
Closing costs – There are costs involved in completing a
real estate transaction. These costs include title insurance, financing costs,
taxes and more. Ask your mortgage lender for a complete list of closing cost
items and an estimate of how much they will cost. Buyers need to be prepared to
pay these.
Down payment – This is how much money you have to put down
on the house upfront. Down payments are usually between 3 and 20 percent of the
price of the home, depending on what type of loan you take out. Ask your lender
what options are available to you.
Mortgage rate – Interest rates for mortgage loans fluctuate,
but the lower yours is, the less you’ll pay over the long run. The interest
rate gets added to your monthly mortgage payment over the lifetime of the loan.
Right now, rates are very low, which is great news for buyers!
Pre-approval letter – This is a letter from a mortgage
lender, proving that you do qualify for a mortgage loan for a specific amount.
It is smart to get this before beginning your home search, so you have proof for
the seller that you can afford their home.
Credit score – Everyone has a score between 300 and 850 that
shows how good or poor your credit history is. The higher the number, the
better it looks to mortgage lenders. It proves how likely it is you can and
will pay back your mortgage debt.
If you have questions, or you’re ready to buy in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook, Lake Forest, Wilmette, Evanston, Glenview, Riverwoods, Bannockburn, and other North Shore communities, give me a call! As your North Shore real estate agent, I am here to help!
Janie BressYour North Shore Real Estate ExpertNorth Shore Real Estate
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