Key Terms Every Home-Buyer Should Know
Our team created this to help our clients navigate all the different terms real estate agents frequently use. If you want the full list, give us a call! 781-645-0505
Affordability
A measure if whether someone earns enough to qualify for a loan on a typical home based on the most recent price, income, and mortgage rate data. When home prices and mortgage rates are higher, it can impact affordability.
Appraisal
A report highlighting the estimated value of the property completed by a qualified third party. Lenders rely on appraisals to validate a home’s value and ensure theyre’ not lending more than the home is worth.
Credit Score
A number ranging from 300-850 that’s based on an analysis of your credit history. This helps lenders determine the likelihood you’ll repay future debts.
Down Payment
Down payments are typically 3.5-20% of the purchase price of the home. Some 0% down programs are also available. Ask your lender for more information about what you may qualify for.
Mortgage
A loan using your home as collateral. It also may be used to indicate the amount of money you borrow, with interest, to purchase your house. The amount of your mortgage often is the purchase price of the home minus your down payment.
Pre-Approval Letter
A letter from a lender that shows what they’re willing to lend you for your home loan. This, plus an understanding of your savings, can help you decide on your target price range.
