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Home-Buying Lingo You Should Know

Thursday, October 10, 2019   /   by Lisa Hodge

Home-Buying Lingo You Should Know


If you are a first time home buyer, or even a repeat buyer, you quickly realize that real estate has a language all its own. Understanding some of the lingo can help you navigate the process a little easier. By learning a few critical terms, you will be in a better position to ask the right questions and make the best decisions.

  • Buyer’s Market – Where the amount of listings outnumber qualified buyers.
  • Seller’s Market – Very few desirable properties listed for sale.
  • Contingencies – Specific conditions included in offer to protect the buyer against unexpected situations, such as inspection, loan approval and appraisal value.
  • Earnest Money – Money deposited when the offer is accepted. Subject to any contingencies, this money protects the seller from a buyer who simply changes her mind.
  • Escrow Agent – A neutral 3rd party who manages the paperwork in a state where attorneys are not used to conclude the contract.
  • Closing Costs – Fees which must be paid by both buyers to conclude the sale.
  • Conforming Loan – A conforming loan is a loan limit by which the loan can be sold on the secondary market; a jumbo loan is one which is higher than this limit.
  • PMI – Private mortgage insurance is a fee paid by the borrower of a loan that they obtained with less than a 20% down payment.

These are just a few of the common terms used in real estate. If you are involved in a real estate transaction, learning a bit of the common lingo will help you understand the process better and make your home sale or purchase a smooth one.
Legacy Home Group MN
9000 Quantrelle Ave NE, Suite 102
Ostego, MN 55330
612-361-9009

The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Regional Multiple Listing Service of Minnesota, Inc. Real Estate listings held by brokerage firms other than Erica Quamme/Lisa Hodge - Legacy Home Group MN are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.” Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items.” Copyright2020Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Data last updated September 25, 2020
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