When you are in the process of Buying a new North Iowa home, all of the real estate jargon can seem like a foreign language! We understand that this can often make the whole ordeal even more confusing and stressful. But, we are here to help! There are 5 common mortgage closing terms that are important to know as you proceed through the buying process. Use this simplified mini “dictionary” to turn you into a closing time pro!
1) Annual Percentage Rate (APR) – The APR covers your yearly credit costs and finances of taking out a home loan. It includes broker fees, points, interest rate, and other credit charges.
2) Closing Costs – Closing costs are covered by both the buyer and the seller. The amount paid by each party is determined during offer negotiations. The closing costs often include application fees, property fees, title examination, title insurance, settlement documents, and attorney charges.
3) Down Payment – The down payment is the amount of money that the buyer must pay up front in order to be secure for the home loan. The down payment is usually paid in cash and costs 3-20% of the home price.
4) Loan Estimate (LE) – The loan estimate provides the details of your loan’s terms, including estimated closing costs.
5) Private Mortgage Insurance (PMI) – PMI is usually required when home buyers pay a down payment that is less than 20% of the home price. This protects the lender who issued your the conventional home loan in case you end up in foreclosure.
Jane Fischer & Associates is ready to help you close on your dream home! Check out our Current Homes for Sale. Give our experienced team a call today or visit our website at https://www.janefischer.com/!