Buying a home and getting a mortgage goes hand in hand. Once you have been pre-approved for a mortgage loan the next step is to find the right house. There are a lot of things to consider when buying a home including the price, condition of the home, and location. Here are some terms you should know while going through the house hunting process:
Active or Pending Status: a home that has an active status means that the sellers are accepting offers. A home that has a pending status means that the seller has accepted an offer but not yet closed.
Distressed Property: a property in which the owners have defaulted on their mortgage or are about to default. These homes are often priced below market value and are also referred to as foreclosures and short sales.
Counter offer: an offer that is made by the home buyers in response to the seller’s initial offer, asking for a different price.
As-is: a real estate listing or a contract that states “as-is” means that the seller is not willing to fix any problems there may be with the property.
Contingency: a condition in a contract that allows a party to walk away if a specified event occurs or fails to occur. Common contingencies include an inspections or appraisals.
Escrow: the third party who holds money in trust for another under the terms of the contract. The escrow money is held until the obligations have been completed, in this case when the home changes hands.
Earnest Money: the initial deposit that is given to the escrow company to show the seller that you are a serious buyer.