5 Real Estate Terms

CHEAT SHEET FOR FIRST-TIME HOMEBUYERS

If you’re considering buying a home, it’s good to know some of the important real estate terms that come up throughout the transaction. Here’s a cheat sheet for some of the terms that you’ll want to know about.

AMORTIZATION Repayment of mortgage through monthly principal and interest installments during the loan period

DTI (Debt-to-income ratio) A ratio that compares the costs of a homebuyer to their gross income

CLOSING COSTS Fees for the purchase of a property that are due at the conclusion of the sales transaction

CONTINGENCIES Conditions included into a property purchase contract that safeguards the buyer in the event of a problem

COMPS Homes in a certain region that have sold in the last few months that a real estate agent analyzes to assess the worth of a home