For the most part, a home is often the most important and biggest purchase a homeowner will ever make. In fact, as one of the largest financial decisions, home buyers will ever make, knowing all the terms associated with a real estate transaction is very important. To make the process a bit easier, here is a list of terms along with their definitions to learn the most common real estate terms you will come across as a first-time home buyer.
An appraisal is simply an opinion or an estimate based on the actual value of the property. The appraisal is just a result of an analysis that is usually conducted by a professional appraiser who has zero interest in the property itself.
Annual Percentage Rate (APR)
This is a term you’ve probably heard before — it can come up when discussing credit and credit cards. However, it is important to know how it ties into a real estate transaction. When it comes to APR in real estate, it refers to the borrower’s costs of the loan term as expressed in the form of a rate. It is important to distinguish the APR from a borrower’s interest rate, as they are very different.
When it comes to a beneficiary, this term refers to the recipient of the benefits associated with the purchase of real property. The beneficiaries of a real estate transaction will be the ultimate beneficiaries of a deed of trust. This deed of trust will typically come from the lender.
Closing Disclosure (CD)
A CD is often a form that is designed to provide any relevant disclosures that ultimately help borrowers understand all of the various costs of the real estate transaction. The CD will typically be given to the consumer three business days prior to the closing of the property.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160.