Articles About Real Estate Broker

Understanding Real Estate Terminology

Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms. There are several key terms associates with purchasing real estate that are helpful to learn.

For example, many buyers confuse the terms broker and salesperson. A broker is a properly licensed individual, or corporation, who serves as a special agent in the purchase and sale of real estate, a salesperson is an individual employed or associated by written agreement by the broker as an independent contractor. The salesperson facilitates the purchase or sale of real estate.

Once you decide to purchase, a salesperson will prepare a sales contract to present to the seller along with your earnest money deposit. The sales contract is the document through which the seller agrees to give possession and title of property to the buyer upon full payment of the purchase price and performance of agreed-upon conditions. The earnest money is a buyer's partial payment, as a show of good faith, to make the contract binding. Often, the earnest money is held in an escrow account. Escrow is the process by which money is held by a disinterested party until the terms of the escrow instructions are fulfilled.

After the buyer and seller have signed the contract, the buyer must obtain a mortgage note by presenting the contract to a mortgage lender. The note is the buyer's promise to pay the purchase price of the real estate in addition to a stated interest rate over a specified period of time. A mortgage lender places a lien on the property, or mortgage, and this secures the mortgage note.

The buyer pays interest money to the lender exchange for the use of money borrowed. Interest is usually referred to as APR or annual percentage rate. Interest is paid on the principle, the capital sum the buyer owes. Interest payments may be disguised in the form of points. Points are an up-front cost which may be paid by either the buyer or seller or both in conventional loans.

In general, there are two types of conventional loans that a buyer can obtain. A fixed rate loan has the same rate of interest for the life of the loan, usually 14 to 30 years. An adjustable rate loan or adjustable rate mortgage (ARM) provides a discounted initial rate, which changes after a set period of time. The rate can't exceed the interest rate cap or ceiling allowed on such loans for any one adjustment period. Some ARMs have a lifetime cap on interest. The buyer makes the loan and interest payments to the lender through amortization, the systematic payment and retirement of debt over a set period of time.

Once the contract has been signed and a mortgage note obtained, the buyer and seller must legally close the real estate transaction. The closing is a meeting where the buyer, seller and their attorneys review, sign and exchange the final documents. At the closing, the buyer receives the appraisal report, an estimate of the property's value with the appraiser's signature, certification and sporting documents. The buyer also receives the title and the deed. The title shows evidence of the buyer's ownership of the property while the deed legally transfers the title from the seller to the buyer. The final document the buyer receives at closing is a title insurance policy, insurance against the loss of the title if it's found to be imperfect.

Buyers should plan on a least four to twelve weeks for a typical real estate transaction. The process is difficult and at times, intimidating. A general understanding of real estate terminology and chronology of the transaction, however, will help any real estate novice to confidently buy his or her first home.

About The Author

W. Troy Swezey is the author of "UNDERSTANDING REAL ESTATE TERMINOLOGY." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, "REAL ESTATE SECRETS EXPOSED." http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

LinkXL™ Revolutionizes Online Marketing with Automated Contextual Text Link Advertising Technology
Automated interface allows publishers and marketers to organically grow their search engine ranking and reach untapped frontiers on the web.

Secrets of Successful Advertising
Here I will explain precisely how to advertise effectively, including:1. The single most important thing to understand 2.

Is Your Advertising Legal?
Internet marketing is crucial to any internet business. There are many different internet marketing strategies, but it is important to pick the internet marketing idea that best fits your business. Internet marketing can end up being the difference between success or failure for your internet business. With the fierce competition between internet businesses, internet marketing is arguably one of the most important facets of your company.

SellingCR Announces Costa Rica's Real Estate Bureau, BuyingCR
SellingCR Costa Rica's first premium content portal site, acquires BuyingCR and enters the real estate market in Costa Rica with a splash.

Advertising Business Gifts That Keep Your Customers Coming Back
One excellent way to use advertising business gifts is as loyalty reward for your existing customers. That?s right ? your existing customers. Up to 85% of your business does not come from new customers, but most businesses put the bulk of their advertising budget into wooing new customers. The problem with this is that your existing customers get neglected ? and customers who feel neglected don?t stay customers for long. The solution is to make your customers feel appreciated, and the best way to do that is with a little gift now and then.

Timeless Marketing Truth: What Is Advertising, Anyway?
Your first clue to the truth about advertising was written more than 100 years ago.

Crystal Cove Marketing Group Announces the Virtual Real Estate Seminar Tour
This is a Virtual Seminar Tour with high profile speakers that saves money and time.

Utah Real Estate Pros Launch the Largest Real Estate Directory of Utah Homes
A new Web site http://www.zoomutah.com will help people buy and sell real estate in Utah. The site includes both MLS listings and for sale by owner listings--offering more home listings than any other Utah real estate site. ZoomUtah.com also offers its members access to a number of unique online real estate tools for buying and selling homes.

Discover Amazing Real Estate and Travel Deals in Mexico
El Dorado Ranch announced today that it is featuring some of the most attractive real estate offers in history and the most affordable way to see them: Three night-Discovery Tours, to Mexico, starting at $98 per person, are being offered to entice buyers looking for a seaside retirement, vacation home or just an excellent real estate opportunity.

PropertyMaps.com Names New CEO : Michael W. Malone to Lead Fast-Growing Online Real Estate Company
PropertyMaps.com, a map-based online real estate search, today announced the appointment of Michael W. Malone as Chief Executive Officer. One of the technology industry's most successful entrepreneurs, Malone has launched several innovative companies, introduced leading-edge online applications and raised more than $50 million in his 22-year career.

Murrieta CA Short Sale Real Estate Could Be Your Best Investment.
Short sales are now a big part of the Southern California real estate marketplace. Many agents, let alone buyers, do not understand short sales and thereby tend to avoid them. The first big challenge in purchasing a short sale is finding an agent willing to put the extra effort needed. Most don't want to show these for quite a few reasons. The big three of which are short sales are a lot more difficult, homebuyers lack of patience, and the whole situation is often stressful.

Property Inspection Tips from San Diego Real Estate Professionals
Anyone who buys real estate in California needs to understand the property inspection process. Even if you've purchased a home in the past, you should research the inspection issues commonly found in the city or neighborhood where your new home is located. For example, conditions that are common in downtown San Diego condominiums and multiple-unit properties will differ from those common to La Jolla, Del Mar, or Carmel Valley houses and town homes. Read the tips below and visit your San Diego realtors at http://www.sdrealtypros.com for additional information.

A Minnesota Real Estate Broker Offers 'All' Realtors Equal Marketing Exposure On One Website
Home buyers want to direct their questions to listing agents and RealEstateOpens.com helps them do just that. RealEstateOpens.com gives listing agents the capability to easily attach their contact information to listings regardless of the brokerage they represent. It is currently free for listing agents to claim their listings on RealEstateOpens.com for most properties, presenting listing agents with a tremendous opportunity to try out this new service.

Holy Smokes: Real Estate Search Site PropertyMaps.com Adds 'Camel City' Home Listings to Growing Database
The free Web site PropertyMaps.com makes it easier than ever to find homes for sale in Winston-Salem, NC.