Navigating home buying lingo can be a bit overwhelming. Especially if you are a first time buyer! Knowing what everything means can give you confidence in a world that involves a lot of moving parts and in-depth nuances. Your South Lake Tahoe realtor will be able to explain everything in depth so it is important to choose someone who is knowledgeable about what is happening in the South Lake Tahoe real estate market. Below are a few of the most basic terms to get you started!
Credit Score: Most know what a credit score is. However, some underestimate how important a good one is for buying a South Lake Tahoe real estate. This determines the likelihood that you will repay future debts to lenders. So getting your credit report cleaned up before applying for a home loan is super important.
This brings us to mortgage rate. The better your credit is, the better your mortgage interest rate is on the money you borrow to buy a home for sale in South Lake Tahoe.
Pre-Approval letter: This is a letter from the lender that approves how much you have to spend on a home for sale in South Lake Tahoe.
Down payments are generally 3%-20% of the purchase price and what you need to put down on a home for sale in South Lake Tahoe. There are also 0% down loan programs, but your lender will advise what loan amount is best for you.
Appraisal: This is a required step in determining the homes worth to both yourself and your lender which secures your financing.
Closing costs: These are the fees that are associated with purchasing South Lake Tahoe real estate. Paid at closing, they include taxes, financing costs, title insurance and more.
It is super important to work with a South Lake Tahoe realtor who is able to explain all the different steps and terms so you understand what is happening along the way.
If you are looking for more information on buying South Lake Tahoe real estate or a South Lake Tahoe realtor to guide you, feel free to reach out. I would be happy to help!