Wednesday, January 7, 2015

Important Terms to Know About Real Estate

How much do you really know about real estate? Whether you are a professional or not, there are some key terms you should know when it comes to real estate. Here are 3 real estate terms you should have a better understanding of to help you finding your home.

Fixed rate vs. Adjustable mortgage rate. A fixed mortgage rate is one where the interest rate will stay the same over the course of the loan. Whereas an adjustable mortgage rate, the interest rate will fluctuate either up or down. To decide which option is best for you, talk with your loan officer, bank, or credit union.

Pre-approval Letter. Before you even start looking for a home, you should meet with your bank or a mortgage lender to find out how much you can get a home loan for. This will help you and your real estate agent know how much of a home you can afford. When meeting with the loan officer or mortgage lender, remember to ask them about closing costs and other fees and if they’ll be covered in your loan.

Buyers agent vs. Real estate agent. A Real Estate Agent (sales agent) is anyone who is licensed to advise the public on real estate issues. In most states, to become a Real Estate Agent you have to complete a specific real estate course and take a state and federal exam.

Real Estate Agents work under the guidance and the legal protection of their broker. If you are interested in becoming a licensed sales agent in Utah please check out Utah Department of Commerce: Division of Real Estate for the necessary requirements and for further education check out the available courses for new agents.

Whereas to become a Broker, more education is required along with having to pass the brokers exam. Brokers are more liable or legally responsible for any mistakes made by agents or salespeople who work for them. If you are interested in becoming a broker in Utah visit Broker Registration site on the Utah Department of Commerce: Division of Real Estate page.

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