You may hear some different terminology as you are making offers on homes and beginning the process of purchasing. This time in your life can be very exciting, but very confusing, so here are some terms that you may hear and what they mean.
This is the Real Estate Purchase Contract. It lists the buyer(s), seller(s), real estate agent(s), purchase price, concessions, what comes with the home, deadlines, contingencies and other contractual guidelines.
This is a deposit to secure the contract. This money will go towards your down payment when you close on the house, but is just a commitment to the seller at the beginning of the transaction.
This is your Debt-to-Income Ratio. This is what your lender looks at to see how much money you can qualify for and it also helps determine the loan programs that may suit your needs best.
As you run into any questions about terminology used or questions about your mortgage, please don’t hesitate to reach out. I am always happy to help with any questions.