Important terms you need to know in the process of buying a home in the U.S.

Title Record

It records all the transactions of the property since the first public legal transaction so that buyers have a full understanding of the property's transaction history for reference purposes.

Adjustable Mortgage

Also known as a fixed-cycle variable loan, an ARM is a pattern of periodic changes in the interest rate of a loan. Generally available in 1, 3, 5 and 7 year terms, most mortgage rates have a maximum cap.

Closing the deal

Closing a transaction is the complete end of the home buying process. Generally, there is a deadline for the closing of a home. The buyer and seller need to complete all the paperwork and sign the relevant documents within the previously agreed upon time frame, and then complete the payment process.

Settlement Costs

When investing in a home in the United States, in addition to paying the seller for the home, there are other costs associated with the purchase. Some of the more common ones are home inspection fees, home property insurance, property taxes, etc.

Additional Conditions

Prior to a real estate transaction, the buyer and seller need to work together to draft a contract. This is the time when both parties can propose certain terms and conditions to protect their rights and interests. The following three general conditions are attached:

Conditions attached to the loan, mainly for problems that may arise in the loan. However, this clause is generally not required if the purchase is made for cash.

The appraisal condition.

Home inspection condition.

Generally, the buyer has 17 days after entering the household transfer process to remove all conditions attached. This means that if the loan is not paid or the home inspection is not satisfactory within 17 days, the buyer can cancel the contract and get the deposit back.

Bargaining

Buying a second home in the United States requires buyers to bid in cities where real estate is in demand. We can start by providing the seller with an offer and terms. If the seller rejects our terms, but still wants to continue negotiating with us, he or she needs to reply to us with a Counter-Offer.

Easement

This is a relatively uncommon situation in the home buying process. It generally means that an individual or group has the right to use your property for a specific purpose or reason, or that a portion of your property will be restricted. For example, if a fruit tree in your backyard blocks your neighbor's light, then your neighbor has the right to have you remove the tree.

Third Party Escrow Agencies

In the United States, money in the home buying process will be supervised by a third party. Usually only after the buyer and seller have fulfilled their obligations under their own contract will the third-party agency pay the funds in hand to the seller, bank or loan company.

Home Inspection

Before we decide to buy a home, home buyers need to have a professional inspect the home, including assessing the quality and safety of its plumbing, heating, electrical wiring, appliances, roof, foundation, etc.

Homeowner's Insurance

The United States is a very insurance-conscious country. Many homeowners purchase homeowner's insurance before trading in their homes. Homeowner's insurance primarily protects homeowners and lenders from losses, including personal accidents and loss of property.

Mortgage

Mortgage means that if you take out a loan to buy a home but do not make the payments on time during the repayment period, the bank or loan company has the right to take your home for collection as collateral.

Pre-Approval Letter

A pre-approval letter is a letter issued by the lending bank or company to the investor sex to prove that the investor sex has the ability to pay and purchase the property and that the lending company and bank are willing to provide financial support to the investor sex home buyer. Generally, in the United States, only with a pre-approval letter is the seller willing to discuss other matters with the investor.

Title

The right and ownership of a home property.

Title Insurance

is designed to protect against incomplete ownership or use of the home and to provide peace of mind to the homebuyer. If the buyer discovers any title problems after closing, he or she should notify the insurance company in writing of the claim as soon as possible. This means that the purchase of title insurance transfers the risk of possible title problems to the insurance company and the homebuyer is not responsible for any losses caused by title problems.