The ABC's of Buying a Home
FICOs and buy downs and escrow – oh my!
So, we admit it. When it comes to building homes, we love taking care of all the details. You might hear us tossing around terms like buy downs and earnest money and feel a little lost.
Know what we mean? Or are you lagging on the homebuying lingo?
For those purchasing their first home, we know that all those terms can be a little confusing. If you’re going to make sense of this alphabet soup, here are a few industry buzz words to get you started:
- Equity: The value of a property exceeding the amount owed on it.
- Curb Appeal: The home-shopping equivalent of love-at-first-sight.
- Prepaids: That portion of your loan closing costs which must be collected at closing to cover taxes, interest and insurance.
- Points: A one-time charge assessed by the lender at closing for the cost of the loan; each point is equal to 1% of the loan amount.
- Rate Lock: The borrower and the lender agree to protect the interest rate, points and term of the loan while it is processed.
Yes, you might call us word nerds. But, that’s OK, because if there is one thing we love, it is building beautiful homes, creating thriving communities and serving our amazing families!