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Buying a new home is an exciting experience, but it's also an enlightening opportunity. You will be exposed to a long list of new terms and processes that are unique to the industry, and for many individuals, it can feel like a steep learning curve. Real estate lingo can be confusing, especially during your first home purchase. Luckily, you can make things easier by familiarizing yourself with the following five terms.

5 Must-Know Real Estate Terms

1. Realtor

A realtor is an agent who is affiliated National Association of Realtors. Unlike a basic real estate agent, these individuals are required to follow a stricter set of rules and practices implemented by a respected national institution.

2. Contingency

Real Estate A contingency comes into play when you're signing a contract on a property but need certain things fixed or completed before closing. If these items aren't corrected, you're no longer legally bound to the home.

3. Title Insurance

Title insurance is designed to protect the new homeowner and their lender from issues that may arise from the property's title. A title grants you legal ownership over the home, but if there are issues like easements or liens, you or your lender could be held financially responsible—even if these things occurred decades ago. Title insurance usually only involves a one-time fee that's paid upon closing.

4. Closing Costs

Every buyer and seller must face closing costs, various fees associated with the purchase finalizing process. This includes upfront mortgage, taxes, and agent fees. In most cases, these expenses amount to around 3% of the cost of the home.

5. Assumable Mortgage

An assumable mortgage is a lesser-known real estate term that refers to the transfer of a mortgage from the seller to the buyer. This mortgage is only available with government-backed loans like FHA and USDA, as conventional mortgages must be paid off at the time of the sale.

 

If you're ready to enter the real estate market, contact the professionals at Herron Realty. Offering both residential and commercial services throughout the Greater Old Forge, NY, area, this expert team takes pride in their customer-centric approach to the buying and selling process. From listing a property to closing on your new purchase, they will walk you through every step of the journey and offer in-depth explanations along the way. Begin your home search online or by speaking with a realtor at (315) 369-6910.

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