Embarking on your journey for Forest Hills homes for sale is an exciting time. Making your wish list, browsing current listings and going on in-person tours are the fun parts. Getting approved for a loan, understanding mortgages and deciphering the mountains of paperwork you will see along the way are not-so-fun.
Even the not-so-fun parts of buying a home are manageable if you understand what’s going on. Before you browse Forest Hills homes for sale, take the time to learn the lingo. If you are familiar with a handful of real estate terms, you’ll be better equipped to make a decision.
Let’s get started! Here are four mortgage-related terms that you are bound to see along the way:
A mortgage prequalification is a rough estimate of how much money a buyer might be able to borrow to purchase a home. Lenders don’t dig deep into your financial history to arrive at this figure. It is based on self-reported information, so it doesn’t hold much weight in the buying process.
A mortgage preapproval is the exact amount of money that a buyer can borrow to purchase a home. It requires a thorough review of the buyer’s financial information. If you get a mortgage preapproval before you start looking for Forest Hills homes for sale, you’ll have an advantage over unprepared buyers.
In a fixed-rate mortgage, your interest rate stays the same throughout the loan. Although you won’t need to worry about skyrocketing interest rates, you won’t be able to take advantage of rate plummets unless you refinance.
In an adjustable-rate mortgage, the interest rate varies within a specific range throughout the loan. Although an adjustable-rate mortgage isn’t as predictable as its fixed-rate relative, borrowers might reap the rewards of low interest rates during certain periods.
We hope that this quick vocabulary lesson has given you enough know-how to get your feet wet in the real estate market. If you are interested in Forest Hills homes for sale, contact Forest Hills Realty to start your journey!