4 Further Terms To Know When Buying A Home
1. Pre-Approval letter
A letter from a lender that shows what they are willing to lend you for your home loan. This, plus an understanding of your savings, can help you decide on your target price range.
2. Inspection Contingency
A provision in the contract requiring a home inspection. This gives you information on the home’s condition and potential repairs.
3. Affordability
A measure of whether someone earns enough to qualify for a loan on a typical home. The buyer’s income, the mortgage rate and the selling price affect this.
When home prices and mortgage rates are higher, it can impact affordability.
4. Equity
The difference between what you owe the lender and the current value of your home.
Many homeowners are realizing that they have more equity than they thought and they’re using it to move.
