Real Estate Glossary – Part II

                                                                                         

Having a house is one of the basic human needs. Whether you are searching for a comfortable apartment on rent, purchasing your first home, or planning to relocate for work, there are many real estate resources to look for in the times of need.

Some people search through the classified section of the newspaper, many turn to real estate brokers to get good alternatives, and rest choose to do viable search through the internet to get the profitable knowledge. Whatever means you choose to get your dream home, it is important to understand the basic terminology accurately.

The article is the second in a series of write-ups written on real estate glossary. Take a look and enrich your knowledge:

Balloon Mortgage: It is a kind of mortgage that provides low rates for starting years; after the completion of the time, the balance is due or is refinanced by the borrower.

Bankruptcy: A situation, in which a person’s assets are surrendered to a loan provider for paying off a borrower’s outstanding debts.

Borrower: A person who acquires the loan with a promise to repay it back within the pre-decided period of time, combined with the rate of interest.

Building code: A regulation that determines the design, construction, and materials used in building.

Budget: A statement that reflects the total amount of income earned and spent during a particular period of time.

Cap: Cap is a limit usually placed on an adjustable rate mortgage and determines how much a monthly payment or interest rate can vary.

Cash Reserves: It is the amount of cash that needs to be kept in reserve. Cash reserve is addition to the down payment and closing costs.

Certificate of Title: It is a kind of document that certifies that the mentioned property belongs to the current owner. Before the title gets transferred at closing, every formality needs to be completed.

About the author:
Myself webmaster of http://www.real-estate-directories.com/ which is a real estate directory & guide that provide all information related to real estate in various areas like real estate listing, real estate resources and more.

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