Key Words to Know When Selling or Purchasing a Home
Some parts of the home-buying process can be exciting and enjoyable, like going to view houses or getting to know different neighborhoods. However, the legal side of things can become complicated and often stressful. If you do not work in the field of real estate, it can be difficult to decipher all the legal jargon used through the home-buying process. Luckily, Colorado Professionals Title, LLC – Title Insurance Agency has created this simple guide to help you make sense of standard terminology.
- An ‘agreement’ is reached as soon at the party selling their property accepts the offer made by the party looking to purchase the property. After this point, neither party can break the agreement without facing consequences.
- An ‘appraisal’ is conducted to ascertain the value of an item, such as property. A qualified professional should undertake this task. The appraisal process will incur a fee. The appraisal process is an essential part of the home-buying process as banks and other lending agencies will require evidence of the value of the property that you are looking to buy, before agreeing to the terms of your loan agreement.
- ‘Appreciation’ is an increase in the value of property that is due to external influences such as inflation or changes in the local housing market. Sellers can take advantage of appreciation by purchasing houses in ‘up and coming’ areas and selling them at a higher price than they bought them for. Estimated increased in the value of your property can be calculated using an appreciation rate calculator.
- Adjustable Rate Mortgage
- An ‘adjustable rate mortgage’ is a mortgage that has a variable rate dependent on the economic climate and other factors. Rates can be estimated using a mortgage rate calculator.
- ‘Closing’ is the final step in the home-buying process. To ensure the home is in the agreed condition as per the contract, you have the right to do one final viewing of the property 24 hours before the closing date. Problems with the title to your home can put your homeownership at risk and affect future sales of the property. Don’t get caught out! Call Colorado Professional Titles, LLC – Title Insurance Agency today at (303) 268-4278 to find out about how title insurance in Arapahoe County can protect your home ownership.
- In particular circumstances, a contract will need changes made to it, and are referred to as contingencies. Check with your agency for the specific terms of your contract.
- ‘Disclosure’ is the act of providing information that may not have previously provided. The level of information which a seller must disclose varies between states. As sellers are not obliged to disclose all types of faults with the property, it is worthwhile having a survey conducted by a qualified surveyor or agency to ensure that there are not hidden issues before completing.
- ‘Escrow’ funds are kept by an agency or agent who is not involved in the sale of the house (i.e. neither the buyer nor the seller) and are transferred upon closing. This is a safeguard designed to protect both parties but does incur a small fee added to the closing costs.
- Fixed Rate Mortgage
- ‘Fixed rate mortgages’ are loans with a rate that does not change according to changes in the market, inflation, etc. Estimated rates can be calculated using a mortgage rate calculator or by speaking to your chosen mortgage lender.
- Principal, Interest, Taxes, Insurance (PITI)
- ‘PITI’ is what your mortgage payments will consist of. There are costs relating to the loan itself – Principal and Interest, as well as monthly payments for Taxes and Insurance such as Home Insurance or Title Insurance in Arapahoe County.
- Title Report
- A ‘Title Report’ is a report concerning the right to ownership of property. It is important to have an agency such as Colorado Professionals Title, LLC – Title Insurance Agency conduct a Title Report before reaching an agreement, as problems with ownership history can affect your right to the title and may even void your right to ownership.
How to Secure the Best Title Insurance Rates in Arapahoe County
Don’t let the legal jargon get the better of you and don’t let them get in the way of the purchase of your dream home. Don’t leave your home at risk from historical title errors and call the specialists in title insurance in Arapahoe County: Colorado Professionals Title LLC – Title Insurance Agency today on (303) 268-4278 and find out about our low rates for title insurance in Arapahoe County.