In life, it's best to do your research before coming up with a final decision. That said, if you're planning on buying a house and have been saving for a down payment, then there's a huge possibility that you'll find yourself confused in the new world filled with plenty of real estate jargon.
That's why we've gathered some of the most common, yet useful real estate terms that you should know before you even start looking for a home, especially if you're living in New York City. Likewise, aside from giving you confidence, educating yourself on the lingo will also give you the assurance you need. No need to worry about missing the important steps that can cost you a fortune in the long run.
Listings Agent vs Buyer's Agent
When it comes to real estate, there are two agents usually involved, the buyer's agent and the listing agent. The former is the one who represents the buyer, while the latter represents the home seller.
However, most people don't realize that when buying a home, there's no need to pay a real estate agent, because they'll already get a commission from the seller.
Friendly Reminder: If you're living in New York City, look for a broker who's willing to give you part of their commission back.
Adjustable Rate vs Fixed Rate Mortgages
Usually, conventional loans have an adjustable rate and fixed rate mortgages. Wherein, a fixed rate mortgage remains constant all through the life of the loan-- usually for 30 years. On the other hand, an adjustable mortgage has a variable interest rate.
Friendly Reminder: For those who are planning to sell or refinance their home before the introductory period ends, then it's advisable to opt for an adjustable mortgage. However, if you're planning to keep your home for more than five years, it's safer to choose a fixed rate loan instead. Additionally, don't forget to look around before finally deciding. This will help you ensure that you'll only get the best deal possible-- allowing you to save a lot of money in the long run. Asking your family, friends, or a professional real estate company can also help you find the best lender recommendations.
Pre-Approval Letter
Before you start looking for a new home or applying for a mortgage, it's always ideal to get a pre-approval letter first. This should be acquired from the bank and it'll give you an estimate of how much the bank is willing to lend you. Likewise, this letter will help you determine what type of home you can afford and if you'll be able to get the loan right when you need it.
Friendly Reminder: When you ask for an approval letter, you should have a clear idea on what your bank is offering. Don't hesitate to ask about the fees involved, costs, and what you're getting for that kind of fee.
Listings
Agents usually refer homes for sale as “listings.” Thus a listing on a website provides information about the home being sold, this includes the price and the number of bedrooms it has.
Friendly Reminder: For the most up-to-date listings, you can always use sites from real estate brokers instead of portals. The brokers have the access for multiple listing service and the agents are tasked to update it on a regular basis. This only implies that the information you can find here are more accurate.
Inspection 
Once an offer has been made, you should also schedule an appointment, this usually costs around $500 or more. The inspector should inspect everything and review things, such as electrical, plumbing, foundation, appliances, walls, heating, and so on.
Friendly Reminder: Always ask your realtor if he can suggest an inspector whom you can rely on. If the inspector finds something wrong, this will allow you to negotiate and lessen the price. However, if he or she misses something, then you'll end up spending more.
Title Insurance
After all negotiations have been made and the seller has finally accepted your offer, then you should wait for the home title report within a week. Some mortgage lenders will ask you to pay for the title insurance, because it's part of the closing costs.
Friendly Reminder: Don't hesitate to ask your agent for recommendations and shop around in order to find the best deals when it comes to title insurance rate. Likewise, you might even be able to negotiate some fees the insurance provider charges.
