The most lucrative real estate deals happen when the buyer is well-informed. One of the best ways for buyers to stay competitive in the real estate game is to understand the lingo.
If you're checking out Flushing homes for sale, you've probably already noticed that the real estate world has its own language! Fortunately, this language is easy to learn, and we are here to give you a free lesson!
Today we'll focus on those tricky mortgage-related words. We decided to start here because understanding the financial journey you'll take while exploring Flushing homes for sale is critical when you are making such a monumental decision!
Get ready to take notes, because here are five must-know terms for the savvy buyer:
- Preapproval: A mortgage preapproval is a letter stating exactly how much a buyer is approved to borrow to purchase a piece of real estate. The buyer must fill out an application, and the lending institution performs an in-depth assessment of their credit and financial situation.
- Prequalification: A mortgage prequalification is a quick estimate of how much a financial institution might lend a buyer to purchase real estate. It is based on information that the buyer provides to the institution. Since this estimate doesn't do any hardcore digging into your finances, it might vary considerably from the amount that you are officially approved to borrow to purchase Flushing homes for sale.
- Adjustable-rate mortgage: If you have an adjustable-rate mortgage, your interest rate will vary after a fixed period.
- Fixed-rate mortgage: If you have a fixed-rate mortgage, your interest rate will remain stable throughout the loan.
- Debt-to-income ratio: This calculation helps lenders determine approximately how much you can afford to put toward a monthly mortgage payment. The debt-to-income ratio equation looks like this: monthly debt payments (including a potential house payment)/ gross monthly income.
With this knowledge, you're well-equipped to start your search for Flushing homes for sale! Get in touch with Flushing Realty today to learn more about navigating the ever-changing real estate market.
Contact us at (718) 997-6000 or email us here for more information.