Key Terms To Know When Buying a Home [INFOGRAPHIC]

Key Takeaway

• Key terms such as appraisal, closing costs, credit score, down payment, mortgage rate, preapproval letter, inspection contingency, affordability, and equity are some vocabulary to familiarize yourself with before beginning your search.  The two largest private financial institutions, Fannie Mae and Freddie Mac, devised key terms for purchasing a home.   Fannie Mae and Freddie Mac set the standards for the conventional home loans they are willing to buy; it’s in the lender’s best interest to ensure that some or all of the loans they grant conform to the standards set by Fannie Mae and Freddie Mac. So even though Fannie Mae and Freddie Mac aren’t directly granting loans to consumers, they impact your loan terms by setting guidelines for lenders.
• Buying a home is a significant transaction that can seem even more complex when you don’t understand the terms used throughout the process.
• If you’re looking to become a homeowner this year, knowing these housing terms and how they relate to the current market is essential, so you feel confident throughout the home-buying process.
• Let’s connect so you have expert answers to any questions as they come up.

Other educational articles about the market and your home search are under Karen’s Blog.