Common Terms Used In Real Estate Business-Russ Whitney

When you plan to buy or sell real estate, you come across all kinds of real estate terminology that many of them might not be familiar with. Russ Whitney emphasis on few terms to know what your real estate agent is talking about when they use common real estate term to help make it easier to communicate, thereby making the homebuying or home-selling process much easier. 

If you plan to buy or sell property, then you need to be familiar with some of these common real estate terms. Understanding these terms will make the process of buying or selling real estate much easier.Here are a number of suggestions made by Russ Whitney interms of real estate that each one should familiarize yourself with:

Appraisal-

The estimated value of the property as determined by a qualified appraiser. Lenders require an appraisal of a property before providing the mortgage loan to the buyer.

Appreciation-

The amount that a property has increased in value over a specific time.

Closing-

The closing is the scheduled day on which the sale of the property is officially finalized. The buyer signs all the mortgage documents and pays the closing costs and the seller completes the transaction with the buyer.

Closing Costs-

The closing costs refer to all of the costs associated with the final sale of a property. These costs typically include agent fees, origination fees, lawyer fees, title insurance fees, survey fees and taxes.

Contingency-

A condition that must be met before the contract between the buyer and the seller becomes legally binding. If the home inspection reveals major problems, then the contingency allows the buyer to walk away from the contract without losing money.

Depreciation-

The amount that a property has declined in value over a specific time.

Down Payment-

The down payment is the amount of money you pay toward a property out of pocket before your lender provides you with the mortgage loan to cover the rest of the property’s price. It varies depending on the type of mortgage you take out. 

Earnest Money Deposit-

The earnest money deposit is the money you provide along with your offer on a house. The earnest money deposit usually accounts for one to two percent of the property’s purchase price. 

Escrow-

The escrow is a deposit of funds or documents, such as the earnest money deposit, that are held by a neutral third party (often an escrow agent) until the sale goes through.

Listings-

Real estate agents will often refer to homes that are for sale as listings. You can find listings online. These listings include basic information about the home for sale, such as the price, number of bedrooms and square footage.

Mortgage Pre-Approval Letter-

Buyers can get approved for a home loan (known as a mortgage) before they find a property they want to invest in. This is known as being pre-approved for a mortgage. 

Multiple Listing Service-

The Multiple Listing Service (MLS) is a large database that real estate agents have access to that provides detailed information about most of the properties that are currently on the market.

Insurance-

This insurance helps to protect the lender and the buyer against any losses that occur due to a dispute over the property’s ownership.

Tips and Traps for Buying an Interstate Property-Russ Whitney

Tips

1. Do independent research. Use the Investment to research bounds you’re interested in. You can find historical information such as increase in property range and rental yields or houses and units. The Market Demand tool is also useful, revealing the number of visits to listing per month in a particular suburb. Learn about the neighborhood and the demographics.
2. Visit the area. Once you have completed your research, I strongly suggest that you visit the area. You can see your area on Google Maps but if you’re going to spend hundreds of thousands of dollars on buying a property, spend a few hundred dollars on flights and accommodation to check out the area for yourself. Drives around the area speak to the locals, including real estate agents and the council.
3. Buy it. If you feel convinced, buy it yourself. However, a good buyer’s agent can be appeal their weight in gold. I know many people who have used buyer’s agents when purchasing interstate with some excellent results. A buyer’s agent can source the property for you, perhaps before it is scheduled on the open market. They can also confer the price and conditions on your behalf.

Traps

A general trap inexperienced investors fall into is pleasing as gospel whatever the interstate selling agent is telling you.

Remember, the agent is working for the merchant, not you the prospective purchaser. You need to do more research than normal when buying interstate property.

For More Info: Russ Whitney Real Estate

Russ Whitney - Real Estate Mortgage Rules

Russ Whitney is one of famous real estate investor and a good leader in the investment-training field. He is also the bestselling author of Millionaire Real Estate Mentor and The Millionaire Real Estate Mindset.  Now we can see the basic Mortgage rules of Russ Whitney.

Basically mortgage is a loan to buy a property and the process of securing a mortgage means lender approval based on your income, credit rating and other debt.

A debt instrument protected by the collateral of exact real estate property, that the borrower is obliged to pay back with a prearranged set of expenditure.

 Select the Right Interest Rate

 The interest rate at which you choose to pay off your mortgage varies from permanent, whereby the rate will NOT alter for the term of the mortgage, and is usually a bit higher but measured more stable.

 Find a Mortgage Can Afford

 Try to choose the mortgage which you can afford and try to test what you can afford mortgage-wise is that your whole monthly debt load should be less than 40% of your gross monthly income.

Identify Fixed Costs

Before you decide what you can spend on a mortgage it’s very important to take stock of your habits and your true fixed costs. Be honest with yourself when putting together your household budget, then along with your student debt and car payments, consider that a fixed cost.

For More Real Estate News: Russ Whitney Real Estate