Real Estate Lingo 101

Brush up on your knowledge of these essential real estate terms.


Today, I want to make sure that you’re up to speed on the meanings of some real estate terms that you may or may not know. This is especially important for first-time homebuyers, who will find the buying process much easier if they understand certain terms.

1. Fixed rate. This means that the interest rate on your loan will remain the same throughout the entire life of the loan.


2. Adjustable-rate mortgage (ARM). This means that your rate can increase after a few years into the life of your loan.


3. FHA loan. This is a type of government-insured loan that will require up to a 3.5% down payment

 

Especially for first-time home buyers, knowing these terms can help you navigate the buying process easier.

4. VA loan. Guaranteed by the government, this loan is available to all veterans of the Armed Forces and requires 0% down.


5. Seller subsidy. This is when a seller contributes some money to help pay for the buyer’s closing costs. This could include things like appraisal fees and home inspections.


6. Buydown. If you get a loan and want to reduce the payments for that loan, you can pay 1% or 2% to buy down the interest rate.


7. Closing. This refers to when you go to settlement on a home and the property transfers to your ownership. In the West, this is typically called ‘escrow.’

There is much more to learn if you’re a first-time homebuyer or haven't bought a home in several years. If you have any questions or would like to be refreshed on some important terms, feel free to reach out to me. I look forward to hearing from you.
 


 

Dan Rochon

Dan Rochon is an Associate Broker in VA, Broker in MD; Operating Principal/ Owner of the Keller Williams Realty office in Alexandria - Kingstowne, VA; Owner of Rochon Investments, LLC; Owner and Co-founder of www.GreetingsVirginia.com and Owner of other Joint Ventures as well as a real estate principles instructor at Moseley Real Estate Schools. 


As a real estate sales agent, Dan and his team are consistently top producers in their marketplace and provide solutions for their clients. Through their investing company, Dan and Traci Rochon have been investing in residential and commercial real estate ventures for more than the past decade.


Dan and his wife Traci are frequent speakers and are often quoted in media stories about the current real estate market. The Rochon's have been featured on The Nightly News with Brian Williams, The Today Show, CNBC, The Washington Post, The Washington Examiner, WTOP News, Voted as The Best of DC Real Estate Agent in the Washington City Paper Readers Poll, and more...