Welcome back! In today's post, we are going to continue offering a glossary for first time home buyers, courtesy of realestate.com! Our real estate agents in Raleigh NC hope that learning the definition of each of the terms below will help you when buying your first home!
First Time Home Buyers Guide | Real Estate Agents in Raleigh NC
Final Walk-Through - The buyer is allowed one last chance to walk through the home prior to the close of escrow. This inspection is not to turn up newly-discovered defects, but to ensure that the home is in the same condition as when the offer was tendered.
Fiduciary Duty - The broker under which your real estate agent works is your fiduciary. He/she is held to specific duties, outlined by state law, to the principal (you). Some of these duties include disclosure, confidentiality, reasonable care and diligence and loyalty.
FICO® Score - Your FICO® score is a compilation of information from the three major credit reporting agencies and calculated by the Fair Isaac Corporation. Your FICO® score reflects your debt payment history, amounts owed, length of credit history, new credit and the types of credit you use. The FICO® score range is between 300 and 850. The higher your FICO® score, the less of a credit risk you present to lenders.
FHA Loan - This is a loan tendered by a traditional lender but insured by the Department of Housing and Urban Development and administered by the Federal Housing Administration. FHA offers several home loan programs, some offering low down payments, others to assist buyers of fixer-upper properties. FHA does not provide loans — it provides insurance for loans.
Escrow Impounds - The lender requires a deposit, as prepayment of taxes and insurance, at the close of escrow. This deposit goes into an escrow account and protects the lender in the event that you allow your insurance to lapse or don’t pay your property taxes. By law, the lender can only request an amount that is equal to no more than two months’ payments.
Escrow - The escrow process assures that the purchase funds are released and that the transfer of the house is completed. The escrow company is a neutral third party to the process and uses the purchase agreement and other associated documents as instructions.
Earnest Money Deposit - The earnest money deposit is money provided by the homebuyer to the seller to prove her earnest intent to purchase the property. The amount varies, and the check is typically submitted with the purchase agreement. If the sale goes through, the earnest money deposit is applied to the down payment. If the buyer walks away from the sale, through no fault of the seller, he may forfeit his earnest money deposit.
Due Diligence - The responsibility of the buyer to exercise the appropriate care before closing on the purchase. Due diligence includes verifying all of the seller’s representations and uncovering any other pertinent facts that have not been disclosed but have a bearing on whether or not you want to purchase the property.
If you're ready to learn more about first time home buying information and the definition of more real estate terms, visit back with our real estate agents in Raleigh on our next blog post!
Real Estate Agents in Raleigh NC | Roark Premier Team
If you’re considering buying a home, contact our real estate agents in Raleigh NC at Roark Premier Team, today! It's time to get started with the process of searching for your dream home!