Real estate investment is an important matter and must not be undertaken without expert advice. If you are looking to buy, rent or sell a home in Killeen, you must get the best for your money. Lone Star Reality is the optimum place that will help you deal with all the property management issues. We provide excellent services in the real estate arena and ensure that you get maximum return for your hard-earned money.
In order to have a knack of how the real estate industry functions, there are certain terms that need to be understood. You must acquaint yourself with these terms because they are useful in dealing with rental property in Killeen.
Our website provides a comprehensive list of real estate jargons that are frequently used in this job. Following is a list of some of the important real estate jargons from this list:
- Annual Percentage Rate (APR): This is the combined mortgage charge that includes interest, mortgage insurance, and loan origination fee. This cost is mentioned for the complete year.
- Balance Sheet: It is a financial statement that gives details about assets and liabilities.
- Certificate of Eligibility: This is an important document that is issued by the federal government. It certifies a veteran to be eligible for a Department of Veterans Affairs (VA) mortgage.
- Down Payment: When someone buys a particular property, there is a certain purchase amount that is paid in cash. This is known as down payment. However, this payment is not financed with a mortgage.
- Equal Credit Opportunity Act (ECOA): It is a federal law that makes it mandatory for all the lenders and creditors to lend credit to everyone without any bias. They cannot discriminate on the basis of age, sex, race, color, religion, marital status or receipt of income from public assistance programs.
- Fair Market Value: It is the highest price that a buyer would pay and the lowest a seller would agree on. The point to be noted here is that this price is not forced upon either of the parties.
- Hazard Insurance: This insurance protects against the damage caused to a real estate property because of natural reasons, fire or defacement etc.
- Origination Fee: This is a fee levied by the creditor for paying the processing charges involved in getting a real estate loan. This is generally one percent of the amount loaned.
- PITI: PITI stands for Principal, Interest, Taxes and Insurance. These are the elements of a monthly mortgage payment.
For more jargons, visit us at www.lonestarrealty.net.
Selling a home is a major decision that is sure to have a strong bearing on your financial situation. Understanding how the process works will help you in effectively managing your finances in the challenging present-day real estate situation. Here’s a look at the major steps involved in selling a home:
- Choosing a realtor: With all the paperwork and legal implications involved in selling a house, choosing a real estate agent to assist you through the process should be the first step you take.
- Setting a list price: The next important decision is that of the price you would like to list your home at in the real estate market. This is a critical step in the home-selling process, since a price that is too high could mean a draught of buyers, while setting the bar too low could mean putting yourself at a loss. Carrying out a comparative market analysis and hiring an independent real estate appraiser could aid you in making this decision.
- Determining net proceeds: This includes calculating the amount of equity that you have built so far, based on factors like the balance on your mortgage and costs incurred during closing. Your realtor might recommend leasing your house until you build sufficient equity.
- Listing agreement: This agreement is signed between you and your realtor, giving the realtor the right to sell your property, and determining how long you agree to list your house with the company.
- Presenting your house for sale: How you present your home has a strong bearing on the kind of buyers you attract. You need to pay attention to details and depersonalize the house as far as possible.
- Negotiation: Your real estate agent will notify you when an offer comes in, and it is at that point that you need to prepare a written negotiation detailing the terms of purchase for the prospective buyer.
- Closing: The final, and in many ways most critical step in the home-selling process is that of closing the deal. Even though the entire process of closing the deal usually takes no more than an hour, it bears significant implications for both the buyer as well as the seller, which makes it important to consult your realtor before preparing the paperwork and verifications for this process. Once you handover your house keys to the buyers, that marks the end of the transaction.