If you are reading articles about San Ramon Real Estate (because you are interested in investing or buying a property in California), you might have encountered words or phrases that are not familiar to you.
To help, we have compiled a list of terms that are commonly used among San Ramon Real Estate articles. Here are a few:
Adjustable-Rate Mortgage (ARM) – The Adjustable-Rate Mortgage allows you to pay a low interest rate for the initial fixed term of your mortgage. Then, the interest rate “adjusts” over time per the terms in the mortgage. The ARM loan is a means of allowing a buyer to become a homeowner but is at risk for future higher mortgage payments. This kind of loan may benefit the homeowner who intends to live in the home for the short term with lower payments but accepts the risk at the time of resale.
Annual Percentage Rate (APR) – This refers to the annual interest rate for the balance of the loan.
Appraised value- Is the amount representing the value of the property as calculated by a qualified professional and whose opinion is not influenced by any of the involved parties in the property. The amount is derived by comparing similar properties within the area, any factors that affects market value and makes adjustments because of difference in property features.
Broker- Is a person who represents the Seller or Buyer in the sale of a real estate property. Depending on which side he or she represents, the Broker facilitates the process of selling the house and conducts professional assistance to their client until the transaction is completed.
Closing- When the sales transaction is completed with all the legal documents signed, funds are exchanged, title is transferred and properly recorded in the local county recording office.
Commission- This is the compensation to the Buyer and Seller’s real estate offices for their representation of their respective clients. By contract, the Seller agrees to pay the listing agent’s office a percentage of the final sales price which that office is then responsible to share with the Buyer’s agent’s office one-half of the total compensation amount.
Earnest Money Deposit- This is a stated amount on the purchase contract given to the Seller by the Buyer as legal consideration. Upon the acceptance of their purchase offer by the Seller, that money is placed by Buyer in the transaction’s escrow account. When the sales transaction is completed, the amount is credited towards the buyer’s total closing costs of the purchase.
Down Payment-This is the amount that is part of the total purchase price of the property with the balance of funds generally provided by a mortgage loan.
Fixed-Rate Mortgages-This type of mortgage loan has a consistent interest rate throughout the term of the loan. The determined interest rate for the mortgage will not change irrespective of the favorable or unfavorable interest rates fluctuations in the lending market.
Foreclosure- If the homeowner can no longer make the mortgage payment to their lender, that borrower is considered in arears after 30 days delinquency. The lender can technically initiate foreclosure proceedings at that point to recover any amounts owed them. The foreclosure process involves a series of notifications and collection attempts. From a practical and legal standpoint, the process can take several months and longer for the lender to recover the property which was collateral for the mortgage loan.
You will encounter more real estate terminology as you further read articles about San Ramon Real Estate. You can check http://gohrealestate.com to view future updates on the definition of pertinent real estate words and phrases. You can also consult a professional Realtor to help you learn more about the real estate market in San Ramon by calling 510-378-5155.
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