Real Estate Terms For Buyers To Keep In Mind

If you are getting into the real estate market for the first time, a little knowledge can go a long way. Following are some lesser known, but key terms you should be familiar with.



Real Estate Terms For Buyers To Keep In Mind



If you are buying a home for the first time, it can be an emotional rollercoaster. On the exciting side, you are buying a home to live in and joining in on the American Dream. On the down side, you are committing to the payment of more money than you probably have ever made in your life, which can lead to sleepless nights till you get used to the idea.



To keep things in control, it helps to know a bit about certain terms you might run into the first time.



When buying your first home, you are undoubtedly going to take out a mortgage. There are a lot of issues that go into mortgages, but one is particularly important. In that vast swath of paperwork, there is a clause talking about acceleration. We are not talking about a car. Instead, this is the clause that lets the lender demand that you immediately pay the loan in full.



Don't panic. This can usually only happen if you miss payments, but make sure you read the clause to understand exactly where you stand.



On a more positive note is the idea of the cost basis of your home. This one is all about tax, particularly tax deductions. As far away as it may seem, you will actually sell the property one day. When you sell it, you have to figure out your tax on any profit. There are lot of things that go into that calculation, but it is important to understand that any improvements you make to the home while living there are added to your initial cost to come up with your deductible amount.



In practical terms, this means save every receipt related to home improvements and repairs. When it comes time to sell, you will be glad you did.



Finally, we will end with something positive that you will want to keep track of on a yearly basis. Owning real estate is all about return on investment from a financial point of view. To get a big smile on your face, just calculate the value of your home each year and divide by the value at the end of the previous year. For most people, this is the most fun they will ever have doing math.



Real estate can be overwhelming when you first get into it. This shouldn't keep you from jumping in feet first.

Things To Remember Before Selecting Mortgage Loans

Mortgage loans are the easiest way to own your house or

property. New low down payment and longer mortgage terms allows

people with low income or low cash to purchase their home by

taking home mortgage loans. The mortgage amount is the amount of

money you borrow from a lender to pay for your house.



Home mortgage loans are offered against collateral security of

the property you purchase. However, you possess the house you

purchase and have its ownership as well; the lender also has an

"ownership interest" on it until the loan has been paid.



The mortgage loan rates have come down, which makes the mortgage

loans attractive for borrowers. Mortgage loan rate varies

according to loan plans. Fixed interest loans have an interest

that is fixed for the entire loan tenure. Here the mortgage loan

rate never changes.



Another type of mortgage loans is flexible-interest mortgage

loans. The interest rate of flexible interest mortgage loans

increase or decrease depending on the market condition and the

national economy.



Consequently, your mortgage loan's term may go

up or down but the monthly mortgage payment will remain same.



Mortgage Loan Application Process



Mortgage loan application is filled in after deciding the

mortgage loan plan. This application for mortgage loans has

columns related to your personal details, income details, credit

history and the details of the property that you propose to buy.

You may be asked to submit documents as proof of information you

provided along with your mortgage loan application form.



On receiving the mortgage loan application, a mortgage loan

advisor will contact you for verification of the details. After

verifying your details and your income source, a surveyor will

survey the property and evaluate it. On successful verification,

you will be granted the mortgage loan amount to purchase your

home.



Things To Remember Before Selecting Mortgage Loans



Your home mortgage loans will be amortized in regular monthly

instalments.



The most popular term for home mortgage loans is 30

years. The choice of mortgage loan term depends on your repaying

capacity. A long-term mortgage loan plan has low monthly

repayments. However, you end up paying more interest on your

loan.



A short-term mortgage loan such as 10 or 15 years has high

monthly payment. However, the total interest that you pay on

that mortgage loan is lesser. Before you apply for a home

mortgage loan, calculate your current and future income and then

decide the period for which you need the mortgage loans.



We suggest you to choose a term for mortgage loans that has

comfortable payment plan to let you own the house and still have

sufficient funds to enjoy your life.

Mortgage Leads, Increase Your Closure Ratio

If you are a loan officer or a mortgage broker, and you are currently using a mortgage lead provider, or you are considering investing with one, one of the most important things you should take into consideration, is the closure ratio.



If you are closing anywhere from 5% to 12% of the leads you purchase, than you are doing very well according to the industry's standard.



Here are a few helpful hints to increase your closure ratio.



Keep in mind that a lead provider does just that, they provide leads.



It is entirely up to you to make the sale. Just because you were provided with a fresh lead doesn't mean you don't have to work to close the deal.



Most lead companies will sell their leads up to five times, so you are competing with other loan officers.



So, if you come across an objection over the telephone such as "I am no longer interested," it is most likely because they are dealing with somebody else at that point.



Here is something you can counter with . . .



Oh, that's to bad, after looking at your on-line profile, I was able to fit you into a really nice mortgage program with one of our lenders.



I can just about guarantee this will get their attention.



If this approach does not work, e-mail them with some attractive programs that you offer, or mail them out a flyer with a list of your products.



Whatever you do, do not give up after the first objection.



Remember, home buyers, and people refinancing their existing homes are very apprehensive, they are embarking on perhaps the largest financial transaction they have ever made, so put yourself in their shoes.



So, the friendlier you come off, and the more knowledgeable you sound, the better your chances of making the sale.



If you fail to have someone answer the telephone, and you have to leave a message, make sure the message is short, friendly, and informative.



Ask them to call back at their convenience to discuss a great product you know they will be interested in.



Remember. It is all in the approach and the inflection in your voice. The lead provider can provide the lead, but you have to work to get the sale. Best of luck with your leads.