Luxury Orlando Real Estate Resource

Must-Know Real Estate Terms For First-Time Buyers In Orlando Florida 

If you're looking to buy a home in Orlando Florida or are applying for a mortgage, you may hear a few of the following real estate terms. Of course, we can't include everything you need to know here, so if you encounter other terms you're unsure about, please call us. We're your Orlando real estate experts, and we'll be happy to guide you and provide all the real estate information you need.

Amortization schedule - A payment plan by which a loan is reduced through monthly payments of principal and interest.
Appraisal - A paid evaluation to determine what a property is worth.
Closing (also called "settlement") - A meeting at which the seller transfers the property's title to the buyer.
Closing costs - Charges paid at settlement. These will vary from state to state, and are based on the purchase price of your home. Call us and we'll help calculate what they would be in Orlando Florida.
Contingency - A provision in a contract that requires completion of an act or event before the contract is binding.
Down payment - The amount of cash a purchaser invests in the home.
Earnest money - Binds a sale of real estate and/or shows the seller that the buyer is serious about purchasing the home.
Equity - The difference between a home's value and what is owed on the home.
Escrow - The handling of funds and/or documents by a third party on behalf of the buyer and/or seller.
Good faith estimate - A written estimate of closing costs the borrower is likely to incur.
HUD-1 statement - An itemized listing of funds (real estate commissions, points, loan fees, etc.) that will be disbursed at the closing (settlement).
Interest-rate lock - A lender's written agreement that guarantees to provide a home buyer a specific interest rate and terms on a home loan.
Listing - An agreement between the property owner and a real estate broker authorizing the broker to market the home.
Point - An amount equal to 1% of the loan amount. Borrowers may decide to pay points in cash in order to lower their interest rate on a loan.
PMI (Private Mortgage Insurance) - Required by a lender when the borrower's down payment is less than 20% of the home's value. Protects the lender if the borrower defaults on the loan.
Principal - The amount of money originally borrowed, minus any payments made subsequently.
Real Estate Settlement Procedures Act (RESPA) - Federal law requiring lenders to provide home sellers and buyers a listing of settlement fees and other transaction-related costs.
Title insurance - A policy purchased by the buyer to protect the lender in case someone else claims ownership of the property after closing. A title policy may also be purchased to protect the owner's interests.
Walk-through - A final inspection of a property just before closing.
Warranty - A legally binding promise that certain stated facts are true.
Zoning - Regulations covering structures and uses of property within a designated area.

Read Also: 

How can a real estate agent help a first time buyer?

Guide for First-Time Homebuyers in Seminole & Orange County Florida - Part One of Two 

Guide for First-Time Homebuyers in Seminole & Orange County Florida - Part Two of Two