Mortgage Jargon for New Home Buyers
Regardless of how tight or how soft the real estate market is, people always dream of homeownership.
Many first-time home buyers encounter several obstacles, with one of them being the mortgage jargon involved in the process. There’s a whole set of terms and definitions they need to familiarize themselves with to fully understand the transaction and make reasonable decisions.
One of the questions I am often asked by new buyers is - what is a mortgage? and I always give them the simplest answer. Simply put, a mortgage is a loan to buy a house. It is a legal agreement between a borrower and a lender. The collateral is the property and if the borrower defaults on his or her obligations, the lender gets the property back.
As an experienced mortgage lender, I learned that the best way to maintain a healthy relationship with my clients is to go straight to the point. Don’t sugar coat a difficult situation, and don’t overwhelm them with a mortgage lingo that is going to make them anxious.
My point here is that the basic loan steps for new home buyers begin when they decide on making their homeownership a reality. Then, find the professionals that are going to be by their side along their journey. When that is taken care of from the get-go, the difficult path to buying the house of their dreams can become a walk in the park.
Yes, there are many terms and a mortgage lingo involved during the process, but your mortgage lender and your realtor should be there to make sure that you as a first-time home buyer, understand every single word of that contract before you sign your name on the line.
Please feel free to contact me with any questions or to schedule a free consultation. Meanwhile, I would be creating a series of one to two minutes video bites where I explain the different terms involved during a real estate transaction and their meaning. Please stay tuned, visit this site frequently or register to receive notifications.