Finding a new luxury homes in AZis no easy task. With the industry becoming more in tune with its market and real estate agents getting hasty over the buy and sell business, it's a must to keep oneself familiar with the common words used in the trade.
If the sign "House for Sale in South Arizona" catches your attention, your next step is probably to turn to a real estate broker. Of course, you don't want to appear clueless and confused when your agent starts to spew out words like "claim," "closing costs," "Escrow," or even "ingress" and "egress" in the middle of a money-property negotiation. Being informed is the least thing that you can do to successfully beat the deal.
Dorn Homes, one of the leading new home builders in AZ, lists some of the most commonly used terms in the real estate industry:
Amortization. It is the process of paying off a loan or an existing debt by making regular partial payments of principal and interest rate over an agreed period of time.
Annual Percentage Rate (APR). In mortgage loan, it refers to the interest rate incurred for a whole year. It is calculated based on a government formula and expressed in percentage.
Balloon Payment. The final large sum of payment due at the end of a mortgage.
Certificate of Title. A document executed by an attorney stipulating the status and description of personal or real property. It serves as an evidence of one's ownership of a property.
Down Payment. Type of partial payment (in cash) that the buyer gives during the onset of a purchase of a good, service or property.
Equity. The current market value of a home minus the outstanding mortgage balance. Home equity is essentially the amount of ownership that has been built up by the holder of the mortgage through payments and appreciation. (www.investorwords.com)
FHA Loan. Type of federal assistance insured by the Federal Housing Administration and made by an approved lender. (www.homeclosing101.com)
Fixed-rate Mortgage. A loan that has a fixed interest rate and remains constant throughout the life of the loan.
Ingress. Right or permission to enter a place or property.
Tenant. One who holds possession of a land or a real estate; a person or a dweller who pays the rent of a house or an apartment.
While this article is intended to provide matter-of-fact and simplified definition of each term, this page may not be sufficient or 100 percent applicable in all jurisdictions. Dorn Homes provides these definitions for general purposes only to help prospective clients in searching for new custom homes in Arizona.
As the most recognized among Arizona custom home builders, Dorn builds only stylish, comfortable, convenient, and energy efficient homes that satisfy and even exceed clients' expectations.