Most of the people are not aware of the terms that are used in the real estate because they rarely get engaged with this field. Usually, they just get in touch with real estate agent once or twice in their life to purchase a house or sell their own.
Before starting the home buying process it’s really important to understand some basic Liberty Hill real estate concepts. It will not only provide you peace of mind but it will also help you save enough dollars in the future. We have gathered a list of real estate terms that are important for you to understand before you start looking for the home.
Most of the real estate agents in Sarah Williams Realty inform new home buyers about these terms but some of them do not do so. So, we are going to give you an overview of these terms to help you save money in the long run.
Listing agent & Buyer’s agent
You get in touch with types of agents when you buy or sell a home; The “listing agent” works on behalf of the home seller, while the “buyer’s agent” represents the buyer.
An agency where one agent represents both sides of the transaction is known as the Dual agency. And we strictly recommend you stay away from such kind of agency at all costs.
Something that many homebuyers don’t know is that the agent doesn’t get paid from the buyer but he takes his commission from the home seller only.
Fixed Rate vs. Adjustable Rate Mortgages
Both kinds of mortgages are included in the conventional loans. A predetermined interest rate is involved in the fixed rate mortgage throughout the life of the loan, and most of them are for 30 years. While a variable interest rate is charged for the adjustable rate mortgage; and most of them are for 5,7, or 10 years.
If you’re planning to refinance your home or sell it before the end of the introductory period then adjustable rate mortgages can make financial sense, but choosing a fixed rate loan is less risky if you are willing to own your home for more than 5 years. There are certain agencies around Texas and the Hill Country that you can look to if you are in need of help deciding. You’ll be able to save a lot of money in the long run if you shop around to find the best mortgages.
In order to get an estimate of how much amount the bank is going to lend you, you must ask them for a pre-approval letter before you start looking for a home. It helps you understand that what you can afford. It also works as a guarantee for home sellers that you will get the loan easily if needed. Then just go to the Liberty Hill post office and check for it.
You’ll need to schedule an inspection after making an offer on a home. Depending on the market, this inspection may cost you around $500 – $800. The inspector will take a deep look at every minor thing and will review things like foundation, heating, plumbing, walls, and appliances.
Ask your realtor about a good inspector. You can negotiate for a reduced price if they find something wrong. And you may have to spend the massive amount of money on repairs after purchasing the home if they couldn’t detect something. So be very careful about choosing the inspector.