04 January . 2019
Real Estate Terms 101
Purchasing a new home is one of the biggest and certainly largest financial decisions in a person’s life, and it can seem like a daunting task. Estrella encourages home buyers to be as prepared as possible when searching for their new home. As a first step, familiarize yourself with basic real estate terms to ensure a more enjoyable home shopping experience.
Escrow is when a third party holds earnest money until final agreements are made by the transacting parties. Escrow offers protection for home buyers with funds being securely held until the deal is closed and the home is transferred to a new owner.
Once a home is selected, the buyer puts down a deposit known as earnest money as a representation of their commitment to buy the home. Once deposited, earnest money is held in escrow while final contracts and agreements are being finalized. At closing, the funds are applied to the buyer’s down payment and closing costs.
On a new home, the elevation refers to the exterior design styles available to buyers, such as Craftsman, Ranch, or Spanish Mission. Estrella builders typically offer various elevation options on each floor plan.
Multiple Listing Service (MLS)
The Multiple Listing Service (MLS) is a database of past and current real estate listings in an area. Each region has its own MLS and only professional real estate agents have access to the listings, can post homes, and gather information to pass on to their clients.
A pre-qualification gives you a financial overview of the mortgage you may qualify for. When a lender has evaluated your credit and decided you’re eligible for a loan up to a certain amount, you are pre-qualified. Be sure not to confuse this term with pre-approval, which is an official statement from the lender stating that after a review of all financial information, you qualify for a specific mortgage.
Carefully planned and built on undeveloped land, master-planned communities are large-scale residential neighborhoods with a vast number of amenities. These communities are designed to allow for residents to live, work, and play all in one area. A variety of different neighborhoods, home builders and home styles make up master-planned communities, ensuring there is a perfect home for any buyer.
These are just a few key terms, and Estrella has plenty of fantastic new home sales advisors for each builder model who are available and happy to answer all your questions. To get started with your home buying journey, click here.
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