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HOME BUYER TERMS

home-buyer-terms

Home Buyer Terms

You’ll hear theses words a lot. Here’s what they mean.

Appraisal

Your lending company will conduct an appraisal of the property to ensure that the market value of the house is in line with the purchase price. The bank will only allow you to borrow what the home is worth based on the appraisal. If the amounts differ significantly the seller may have to agree to lower the price.

Clear to Close

Sometimes referred to as a ctc, is the underwriter’s official statement saying that you have passed all underwriter requirements and the buyers are ready to close on their purchase.

Closing

The day when buyers sign legal documents involving the purchase of the home and receive the keys to their new house.

Closing Costs

The expenses incurred in the purchase/sale of a home, such as attorney fees, taxes, and recording fees. Disclosures Documents prepared by owners when they wish to sell a home that includes an itemized list of facts related to the condition of the dwelling, allowing prospective buyers to make informed decisions about purchasing the home. 

If you want to try to figure your closing cost look no further. Or just contact one of our agents.

DDRA | Due Diligence Request Agreement

This is the form that buyers submit to sellers after inspections have been completed where the buyers will ask the sellers to fix any major repair items before closing. This is a form that will be negotiated with the sellers with the assistance of you realtor.

Due Diligence Fee

The amount paid by the buyers directly to the sellers, which the seller deposits and keeps. If the deal closes the buyers will have that credited back to them at closing. But either way the amount up front is the sellers to keep and non refundable to the buyers. Due diligence period The a negotiated period of time (usually 30-45 days) during which the buyer has the opportunity to conduct their “due diligence” before deciding to move forward with their purchase of the home. The due diligence period begins once the contract is signed by both parties. This is one of the most confusing home buyer terms. 

Earnest Money

A negotiated refundable deposit amount of money that is given to an agreed upon escrow agent who deposits it into a trust account until closing. This amount will be credited back to the buyer at closing. People often don’t know the difference between this home buyers term and due diligence fee. 

Inspections

Buyers have the right to inspect the property during the due diligence period. Professional home inspectors can assess the overall condition of the home and its components including the roof, plumbing, electrical, appliances, heating & cooling systems. Inspections can help identify the presence of termites, lead, radon gas, and other hazards.

Pre-Approval

The pre-qualification for a loan or mortgage of a certain value range. (lender pulls credit and gives an exact amount for what you will qualify for).

Pre-Qualification

Process whereby a loan officer takes information from a borrower and makes a tentative assessment of how much the lending institution is willing to lend them. (No credit is pulled).

Purchase Price

The price you are willing to pay for the property.

Settlement Date

The settlement date is the day when buyers sign legal documents involving the purchase of the home and receive the keys to their new house.

Under Contract

The period when both parties (buyers & sellers) have signed the offer.

Walkthrough

The purpose of a walkthrough is for the buyer to ensure the property’s condition hasn’t changed since your last visit, that any agreed-upon repairs have been made and that the terms of your contract will be met.

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ABOUT MANTLE REALTY

Mantle Realty is a leading independent real estate firm based in the Triad of North Carolina. Mantle is passionate about providing clients with  cutting edge technology and hometown service, whether they are buying or selling a home.

Many of Mantle Realty’s agents have lived in the areas they serve their entire lives, and love turning their clients into their neighbors. With offices in Greensboro, Lexington, and Welcome, Mantle is equipped to cover all of the Triad with convenience and care.