As you search Idaho properties there are many terms that you need to know to ensure you and your agent are communicating well. To get started with an experienced agent today, call (208) 571-7145.
Real estate in Idaho is as inundated with the specialized use of terms as any other organization, and the more terms you know, the easier the home buying and selling process will be. This list is just a short one, but contains some of the most well used jargon real estate professionals use, and it may be helpful to understand what they mean.
FHA- This is a government agency which provides mortgage insurance to FHA-approved lenders. FHA mortgage insurance helps protect the lender against losses associated with mortgage default by paying a specified claim amount to the lender. Many first time Idaho buyers have been able to get into their first home by using an FHA backed loan.
Home Equity- The value of ownership that's built up in a home or property which represents the current market value of the home, minus any remaining mortgage payments. This value is gained over time as the homeowner pays down the mortgage and the property appreciates. Idaho buyers have the option of borrowing against their home equity through a home equity loan or line of credit.
Home Inspection- The approval of one's mortgage loan depends upon the outcome of the home inspection. The home inspection is a thorough examination of a real estate property's condition. A qualified home inspector will look at the condition of the home's roof, foundation, plumbing, electrical work, and safety issues amongst many others.
MLS (Multiple Listing Service) - This service is provided by our group of brokers to assist prospective Idaho buyers in locating their next home. This MLS allows each real estate broker to list each other's houses. It's a comprehensive index of available homes which is updated constantly, and used by real estate companies everywhere.
Pre-Approval- This happens when the lender evaluates the potential borrower, and determines whether the borrower qualifies for a loan and how much they qualify for. The lender will thoroughly look into the income and expenses of the borrower and an extensive look into their credit report and score. When in the market for your next Boise home, it's important to gain pre-approval so you know what homes you are able to purchase.
Short Sale- The sale of real estate property that generates proceeds that are less than what is owed on the property. Short sales are an alternative to foreclosure, and can only be performed by the mutual consent of the borrower and lender. There are benefits to both parties in a short sale, including the avoidance of a foreclosure on the seller's credit report and the lender's avoid substantial fees associated with foreclosure proceedings.
These are some of the most commonly used verbiages of the real estate world, and can help you navigate through the Idaho housing market as you proceed through the home buying process.
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