Home Buying Terminology

dictionaryInvesting in new home construction in Mandarin, FL, can be a daunting enough process on its own without a bunch of complicated terminology getting in the way. Being unfamiliar with some of these terms can make the entire process seem more overwhelming, so we’re here to help explain some common home buying terms to help you understand and jumpstart the process.

Escrow – When an impartial third party holds on to something of value during a transaction. This can help protect both buyers and sellers alike, assuring all parts of the deal are held up on the sellers end and the amount held in escrow forfeited to the seller if the buyer backs out with no reason.

Title – The legal document verifying the ownership of a home.

Down Payment – The initial cash amount paid up front on a home purchase before the rest is financed by a mortgage loan.

Mortgage – A home loan that is offered by banks, credit unions, or other lenders with various rates and varying term durations for repayment.

Amortization – The schedule that is determined to pay off a mortgage over a specified length of time, made in monthly installments.

Appraisal – An assessment given to determine the value of a particular property by a professional.

Learn more about the home buying process and new home construction in Mandarin, FL and the surrounding area at CollinsBuilders.net.