Buying a house is a big deal, and it is very necessary to understand the terms related to real estate and housing purchase and sale in advance.
People who buy a house for the first time will suddenly be exposed to many real estate terms and concepts that they have never heard of before, and will be a little unresponsive for a while. It takes energy and time to fully understand these terms and concepts, but it is worth it.
clearly understands real estate terms and concepts, can communicate with brokers effectively and freely, be confident and confident, and the house buying process will be much smoother and smoother.
The following are some real estate terms and concepts, let’s take a look.
Mortgage Pre-approval
Before viewing a house, the broker will remind you to get the loan institution’s pre-approval letter in advance. Mortgage pre-approval is actually a loan amount document approved by the bank based on the information submitted by the applicant. The bank can determine whether the applicant can obtain the loan and the specific loan amount based on the basic information such as income, assets and credit scores submitted by the applicant. Note that the mortgage pre-approval is only a pre-approval and does not guarantee that the loan will be approved in the end. The pre-approval will expire after 90 to 120 days.
Fixed interest rate mortgage
Marketing interest rate determines the cost of mortgage. The lower the interest rate, the lower the mortgage cost. Fixed mortgage means that the interest rate remains unchanged during the mortgage period. If interest rates are bullish in the near future, it is best to sign a fixed interest rate, so that you can lock in while the interest rate is still at a low level. For convenience of daily budget, some buyers prefer mortgage repayment to be within predictable control, and it is also best to sign a fixed mortgage.
Floating interest rate mortgage
Floating interest rate mortgage refers to the interest rate fluctuations during the loan period. Usually, the initial floating interest rate for new customers is lower than the fixed interest rate, so that customers can be attracted. Once the initial period passes, interest rates may fluctuate up and down.
Third-party custody
Third-party custody refers to the custody period between the buyer's offer and the final delivery period. During this period, all relevant documents and amounts of the house purchase and sale transaction are custody by the third party to ensure that the contract can be fulfilled as scheduled after all conditions are met.
Condominium
Condominium refers to an apartment managed by the Condominium Association. The Condominium Association formulates regulations that stipulate how all apartment units and apartment buildings are used. Apartment owners are allowed to pay the management fee every month to pay the cost of the public area management.
Consolidated Town House
There are two types of town houses, one is owned and the other is co-managed. To jointly manage a town house means that the town house belongs to a co-management committee. Just like the condominium mentioned above, the owners of the co-managed town houses must also abide by relevant management regulations. Co-management is actually a form of ownership, which means that everything inside the house belongs to the owner, and everything outside the house is owned by the co-management agency.
Owned Town House
Owned Town House is another form of ownership, which means that everything related to the house, including the house itself, the property land and everything on the land, is owned by the owner and is not managed by any co-governmental agency.
Detached House
Detached House refers to a separate residence that is not associated with any other property, also known as single-family homes.
Semi-detached house
Semi-detached house, also a single-family house, refers to the construction of two independent houses in a joint and sharing a wall.
Building Management Files
Purchase co-managed properties, and requesting and reviewing building management documents is very critical. Building management documents refer to documents that explain the current operating and financial status of a co-management property and co-management company.
Conditions
When you are preparing to buy a house for a price, the offer to buy a house may include conditions and terms. These conditions must either be fulfilled, that is, they must be executed, or they must be waived, which means that both the buyer and the seller agree that the conditions will be invalidated. These conditions are formulated to protect the rights and interests of buyers and sellers when some terms are not fulfilled. For example, the loan conditions allow the buyer to apply for a loan before formally buying a house. If the loan cannot be approved for any reason, the sales contract will be automatically invalidated, and the buyer does not need to be unable to get out of the house because he has no money to buy a house.
Sales for sale
House is on sale, and there are words for sale in the current situation, which means that there are some problems with the house. The seller will not solve these problems before the house transaction, and you must accept it unconditionally.
Similar houses
refers to similar houses sold in nearby communities in recent weeks. Real estate agents will list these similar house data to help buyers estimate the value of the house and offer a reasonable purchase price to the seller when buying a house.
Property Insurance
To ensure that the house you buy has no property rights disputes, you must buy property rights insurance. Property insurance protects the buyer before the property rights are handed over, there is no retention, fraud or legal ownership disputes in the house.
Ban valuation
Bank loan, in order to ensure that the house to be purchased is indeed worth the purchase price offered by the buyer, an appraiser will usually be sent to evaluate the property market value before the mortgage is formally approved. If the property valuation is lower than the buying price, the bank will either refuse to be approved by the loan or reduce the loan amount.
House Inspection
When buying a house, the house inspection conditions are generally added to the intention to buy a house. With this condition, the buyer asks a professional home inspector to inspect the house with , and may find some problems that ordinary people cannot detect. If the house inspector finds a problem, the buyer will have sufficient conditions to lower the price, or ask the seller to solve the problem before delivery, or simply abandon the purchase.
Real estate terms and concepts sound like a foreign language to people who had no idea about real estate before. For the first time, people who buy a house must take some time to understand these terms and concepts.
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