The world of real estate can be confusing as a first-time buyer, and this can make it challenging to make the deal that you want without causing yourself unnecessary stress. To ensure that you can navigate buying your first home without any problems, here are all the necessary terms that you need to know.
No Chain Properties
No chain properties are those that are being sold by someone who is not buying another home at the same time they are selling their current property. No chain properties can also occur if a buyer is not waiting for another home to be sold. They usually occur when a home has been inherited or if one party is a first-time buyer.
Real Estate Lawyer
Real estate lawyers deal with the legal side of your transaction. They will be able to provide legal protection when you are buying a home and can help to provide you with advice in terms of your closing agreement. Your closing agreement is the terms on which you finalize the sale of your home. To find a real estate lawyer in your local area, Home Canada Financial can help you to get the professional guidance that you need.
Equity refers to the amount of your home that you own, compared to the amount that you have placed a mortgage on. This means that, if you have taken out a mortgage, your equity will increase over time as you begin to pay off the full value of your home.
Your home warranty acts as protection in case you find problems with your home that were not mentioned within your closing deal. This can ensure that you are financially secure if issues arise within your home, such as foundational problems, or the need to fix your electrics.
Fixed and Adjustable Rate Mortgages
You need to know each type of mortgage to consider which is best for you. A fixed-rate mortgage has the same rate of interest over the number of years that you pay it back, whereas an adjustable-rate mortgage’s interest rate changes over time at intervals.
Buyers, Listing and Dual Agents
There are many types of agents that you need to be aware of when you buy a home. A buyer’s agent will represent the buyer, while the listing agent will represent the seller. However, in some cases, there will be a dual agent who will represent both parties in legal matters.
An appraisal is one of the steps that you need to take to ensure that you can procure a mortgage for you and your family. During an appraisal, your new home will be assessed to determine its value to allow your mortgage lender to make sure that your mortgage covers the cost of the house.
Additionally, your home will likely need an inspection when you buy it to ensure that there are no issues within the property and that you are getting a good deal on it.