Loans By Kathy: Do you speak the language of a home buyer?

Do you speak the language of a home buyer?

Do you speak the language of a home buyer?  If you are a first time home buyer, more than likely you will feel like you are stepped into a foreign land.

 

Here is a quick list of the most common terms you will need to know before you make that offer:

  • Contract - an agreement between two or more competent parties to do something.
  • Earnest Money- also known as good faith money.  It is a held either by the listing broker or the attorney until closing.
  • Binding contract date - this is the date when both parties have agreed on terms.  It also starts the clock ticking for all contract time lines.
  • Down Payment - the financing program you select will determine the amount of your down payment.
 
Here is the most important point I would like to make, in order for a contract to be valid it must have the following:
  • an offer by one party
  • an acceptance by the other party
  • competent parties
  • consideration - this is the earnest money deposit
  • legal purpose
  • written documentation
  • description of the property
  • signature by all parties 
 
 
 

 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

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404.745.8060

 

Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

Comment balloon 18 commentsKathy Sheehan • October 01 2012 05:18AM

Comments

Good point Kathy.  We tend to forget that not everyone grasps the meaning of the words that we use all the time.

Posted by Mona Gersky, GRI,IMSD-Taking the mystery out of real estate. (MoonDancer Realty, Dillsboro,NC) almost 6 years ago

I was working with a first time home buyer last month and in one of our conversation I was reminded that we sometimes speak in a language that not everyone else understands.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago

Good post, Kathy! I think it's true of almost any industry.  We all seem to have our own terms that are familiar to us but may be Greek to others.  The other day I had a home owner ask what is a comp? 

Posted by Alisa McKeel Willson, Certified Res. Appraiser (Appraisal Pros in Texas) almost 6 years ago

It really is important to keep our clients in the loop!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago

Good morning, Kathy -- excellent reminder!   Although we are familiar with the terms and customs most people, especially first time home buyers may have never heard of or really know the meaning behind the terms we may be using.   

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) almost 6 years ago

Michael, it is a different language isn't it?

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago
Hi Kathy, buyers don't know what we are talking about so we need to take extra time to make sure that they understand.
Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) almost 6 years ago

Debbie, I spend a good part of my day doing just that!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago
Thanks for making some very important points clear for everyone!
Posted by Joy Daniels (Joy Daniels Real Estate Group, Ltd.) almost 6 years ago

You made this easy enough for even a layman like me to understand!  Thanks.

Posted by Ron Marshall, Birdhouse Builder Extraordinaire (Marshall Enterprises) almost 6 years ago

Kathy, people forget that we have a whole language that isn't common to non buyers.

Posted by Connie Harvey, Realtor - Nashville TN Real Estate (Pilkerton Realtors) almost 6 years ago

Joy, thanks for the compliment.

Ron, that is a nice compliment.

Connie, it does happen!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago

Kathy, sometimes just breaking down on the legalese or real estate-ese makes it so much easier for people to understand.  Thanks for doing that!

Posted by Don Sabinske, Sabinske & Associates Inc. (Don Sabinske, Sabinske & Associates Inc.) almost 6 years ago

Don, alwasy willing to share!  Thanks!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago

Our local board is actually offering a class on body language next week! Amazing that you wrote about this now!

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) almost 6 years ago

Barbara, I guess I am ahead of the crowd! :)

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago

Kathy this post is a good reminder that we need to speak to our clients in layman terms...I had someone ask me the other day what is a CMA.

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty, Martha Hilton, Broker) almost 6 years ago

Every once and awhile I slip and say the same thing.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago

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