There are many things you'll need to know to be a successful real estate agent. One reason why Homesale Realty is so effective is that our team is always learning!

One of the first challenges in any real estate career is learning the lingo. You won't need to know every industry term to earn your real estate license, but studying up will build your confidence.

Let's look at some vocabulary you can't do without:

1. Adjustable-Rate Mortgage (ARM)
   In an Adjustable-Rate Mortgage, interest rates are fixed for a short time after mortgage origination but can change periodically. This often leads to lower payments at first and higher ones later on.
   
   
2. Appraisal
   An appraisal by a third-party expert is used to establish a home's value during the selling process. This assures the buyer's mortgage lender that the property is truly worth the amount being loaned out.
   
   
3. Closing
   Closing is the final step in the home buying process. In this last meeting, the seller transfers ownership of the property to the buyer, and the buyer executes necessary payments. He or she can then move in!
   
   
4. Closing Costs
   Closing costs are expenses related to transferring ownership of a property, such as appraisal fees, loan origination fees, and costs of a real estate lawyer or title company. They are usually paid by the buyer.
   
   
5. Down Payment
   A down payment is paid by the buyer during closing and usually amounts to 20% of the home's purchase price. Several specialty loan programs, like those for first-time buyers, offer lower down payments.
   
   
6. Equity
   Equity is the value in a home represented by the amount of the loan principal the buyer has paid off over time. It can also be thought of as the "part" of the property the buyer owns at any given time.
   
   
7. Escrow
   Escrow ensures fair dealing by designating a neutral third party to hold something of value temporarily, such as a buyer's earnest money. When the transaction is done, the escrow agent releases held funds.
   
   
8. Fixed-Rate Mortgage
   A fixed-rate mortgage has a mortgage rate that remains the same over the loan's lifetime – in general, monthly payments neither go up nor down. Changing the mortgage rate requires the buyer to refinance.
   
   
9. Home Inspection
   A home inspection is a "top-to-bottom" of a home's condition, including all its major building systems, like roof, HVAC, and sewer. An inspection report gives details on any necessary repair work.
   
   
10. Internet Data Exchange (IDX)
    IDX is a set of regulated technologies that allow real estate professionals to access MLS listings and to use and display listings right on their website. It takes the form of an opt-in platform designed to be easy to use.
    
    
11. Multiple Listing Service (MLS)
    MLS is a collection of more than 700 regional databases containing property listings for their area. Agents gain access to their local MLS by paying dues and can freely share listings across regions.
    
    
12. Preapproval
    In preapproval, a homebuyer submits detailed financial information to a lender, who authorizes a loan package good for up to 90 days. This allows buyers to bid on homes more quickly.
    
    
13. Property Deed and Title
    Title is a legal concept that represents the right to ownership of a property. The home's deed is the physical document that confers title for a specific property and includes a precise description of it.
    
    
14. Seller Disclosure
    A seller disclosure is an official document issued by the seller to the buyer. It outlines existing problems with the property and any other information that the buyer is legally entitled to know.

Contact BHHS Homesale Realty to learn more today.