Learn the language of real estate | Business

In 1967, Rex Harrison won an Oscar with his song “Talk to the Animals” for the musical Doctor Dolittle.

The slogan of the song is: “If I could talk to animals, learn their language, maybe get an animal diploma…”. The premise is that we would have more understanding and be better off if we just understood.

Real estate is no different. It has its own language and can be overwhelming. However, if we learn the language or at least understand, it will facilitate the process and the transaction.

So this month I would like to give you an overview of a working knowledge of the concepts of a trade.

Mortgage is a type of loan used to finance property. When you buy a house you will need to talk to someone about the amount of money you are able to borrow. This is your pre-qualification.

A prequalification letter is proof that a loan officer has managed your credit, reviewed your assets and debts to establish how much a buyer can use to purchase a home or property. It does not guarantee the loan, because often this approval process involves contingencies, which must be resolved.

Contingent is another word, which means something else has to happen before it happens. It is during this period that you will need to work closely with the loan officer.

When you find the property and are ready to make an offer, the agent assisting you will ask you about deposits or escrow.

Escrow is simply other people’s money. When making an offer on a property, it is common to deposit money as deposit money, money in escrow. A good analogy, although technically incorrect, is a security deposit. This money is held by the broker to ensure that all conditions of the transaction are met.

Home inspection and appraisal are also concepts that arise. Many times these get confused.

A home inspection is the responsibility of the buyer to know the condition of the property. This is a snapshot of the house on a specific day and at a specific time.

The assessment is completely different. It is ordered by the mortgage lender, and it is used to establish the value of the property. Another way of saying this is that the appraisal is to protect the lender’s interest in the home.

Clear to close are the happiest words you will hear in the process. This sentence means that all loan conditions have been met and the house has been valued at least at the contract price.

This is when all parties are ready to meet and sign the final documents that will transfer ownership to the new buyer’s name. This is the day you usually get the keys to your new home.

Listening to real estate jargon can be overwhelming. If you’re not in the business, it can make you feel like you’re at the mercy of another.

The real key is not to be an expert, but to find an expert who will take the time to walk you slowly through the process and answer all your questions. Who knows? You could talk with the agents and pursue education in real estate.

Charles Hinckley, a local realtor, is the past president of the Kentucky Realtors organization and was named the 2019 Realtor of the Year by the Heart of Kentucky Association of Realtors.

Charles Hinckley, a local realtor, is the past president of the Kentucky Realtors organization and was named the 2019 Realtor of the Year by the Heart of Kentucky Association of Realtors.

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