The Need-to-Know Real Estate Lingo for Savvy North Georgia Home Buyers and Sellers

When it comes to buying or selling your North Georgia home, the process can be overwhelming to those who are not familiar with the everything it takes to complete the sale or purchase.

Having an experienced Realtor on your side is the best way to ensure your real estate transaction is a smooth one. Your North Georgia Realtor is there to help you get the best deal, understand the paperwork – from offer to closing, and be certain everything is completed on time and per Georgia law.

Savvy home buyers and sellers might want to enhance their knowledge of the buying and selling process though, by getting familiar with these terms that are associated with real estate transactions.

Important Real Estate Terms to Know  

• Credit Score – This report from the national credit bureaus lets a lender know just how creditworthy you are. Credit scores range from 300 to 850 and is based on the files in your credit report that indicate how timely you pay your bills and tend to other financial obligations.
• Pre-Qualification – As soon as you decide to purchase a home, you should get pre-qualified by a lender to ensure you will be able to obtain a mortgage. This is the first step to home ownership and lets you know your approximate home budget and how much you can afford to spend on your new house based on the initial financial information provided.
• Pre-Approval – When you begin looking at homes to buy, it is time to apply for pre-approval on a home loan. This is when your lender verifies your financial information like income, debts, and credit score to determine the exact amount you are approved to borrow. Most sellers require a pre-approval letter before they will consider an offer.
• Mortgage – This is the loan needed from your bank that will be used to buy your home. The bank will remain in possession of the home’s title until the mortgage debt is paid in full.
• Escrow – An escrow account is set up by your lender and is used to pay for things like property insurance and taxes on your behalf. The cost of these items can be rolled into your monthly mortgage payment so that you do not need to worry about paying these individual bills each year.
• Earnest Money – Once you make an offer on a home, you are required to deposit earnest money, referred to as good-faith funds, which ensures that you are serious about buying the home once your offer is accepted. The money is often held by the closing attorney until the sale is complete. At closing, this money is credited to the homebuyer and used towards the home purchase. Should the buyer breach the contract, the seller is entitled to the escrow money.
• Down Payment – The part of your mortgage loan that will need to be paid at closing is called the down payment. Your lender will let you know exactly how much money will be required to buy the home and discuss your options before the purchase.
• Appraisal – In order to ensure the home is worth the amount of the loan requested, a professional appraiser is required to offer their expert assessment of the value of the property. 
• Home Inspection – An inspection of the home is a good idea for the buyer to ensure that there are no major issues with the property. A professional home inspector can evaluate the condition and make the buyer aware of any concerning problems before the purchase.
• PMI – When buyers have less than 20% equity in the home they are purchasing, many lenders require private mortgage insurance (PMI). This monthly fee is also rolled into your mortgage payment and can be removed once you obtain equity in your home that meets the required percentage.
• Closing Costs – Expenses like attorney’s fees, title search, lender costs, inspections, etc. are considered to be closing costs. These costs, which are in addition to the purchase price of the property, can be spendy, so hiring a Realtor to look out for your best interest is the best choice.

Let Our North Georgia Realtors Help You Buy or Sell Your Home 

The team at Southern Select Properties is here to help you buy or sell your North Georgia home. With almost 20 years of experience in assisting buyers and sellers with their real estate needs, our professional team knows the North Georgia Real Estate market and can ensure you get the very best deal with the least amount of stress possible. Contact Southern Select Properties today for all of your real estate needs.