Real Estate Terms Every Buyer Should Know
Lender V. Mortgage Broker: Many people are involved in the buying and selling of your home. A mortgage lender is anyone who is loaning the money to pay for the mortgage. The mortgage broker, on the other hand, is someone who works with the borrower to find the best opportunities. The role of the broker is to use their specialized knowledge of the trends, policies, and local connections to achieve the best results for their borrowers.
FHA & VA Loans: The FHA has several programs by which people can get loans. The loans are backed with a type of home mortgage insurance whose cost is rolled into the loan itself and is paid each month through the mortgage payment. VA loans are for veterans. Similarly to the FHA loans, the VA does not lend any money directly. The FHA instead provides enough guarantees to lenders that veterans can buy homes with low or no down payment.
Closing Costs: Seemingly self-explanatory, closing costs are something that need a little more than surface explanations. As a part of the buying process, these costs stack on top of what you are already paying down for the property itself. A seller can, if negotiated within the terms of contract, assist in the payment of closing costs. In general, they cover such things as appraisal fees, credit check fees, escrow fees, loan origination fees, and so on. These will all be itemized out for buyers for each individual case.