Crafting lifestyle
A down payment is a portion of the purchase price that a buyer pays upfront when purchasing a property. It is typically expressed as a percentage of the total purchase price, with common down payment percentages ranging from 3% to 20% or more. The down payment reduces the amount of money that needs to be borrowed through a mortgage loan and demonstrates the buyer’s financial commitment to the purchase.
Escrow is a financial arrangement where a neutral third party, known as an escrow agent or escrow company, holds funds and documents on behalf of the buyer and seller during a real estate transaction. The escrow agent ensures that all terms and conditions of the purchase agreement are met before disbursing funds and transferring ownership of the property. Escrow accounts are commonly used for earnest money deposits, down payments, and closing costs.
Pre-approval is a process in which a lender evaluates a borrower’s financial information, such as income, assets, credit history, and debt, to determine the maximum amount of mortgage loan for which the borrower qualifies. Pre-approval provides buyers with a clear understanding of their purchasing power and strengthens their offer when making an offer on a property. It demonstrates to sellers that the buyer is serious and capable of securing financing for the purchase.
Real estate developers in Kolkata are companies or individuals involved in the acquisition, development, and construction of residential and commercial properties in the Kolkata area. They play a crucial role in shaping the city’s skyline and meeting the demand for housing and commercial spaces in the region.
The top real estate companies in Kolkata are leading firms known for their expertise, reliability, and quality in the development and management of real estate projects in the Kolkata market. These companies have a strong reputation, extensive portfolio, and significant market share, making them preferred choices for buyers, investors, and tenants in the region.
Closing costs are fees and expenses associated with the purchase or sale of a property, payable at the closing of a real estate transaction. These costs typically include fees for services such as appraisal, title insurance, attorney fees, property taxes, loan origination fees, and recording fees. Closing costs are usually paid by both the buyer and seller, although the specific allocation varies depending on the terms negotiated in the purchase agreement.
MLS stands for Multiple Listing Service. It is a database used by real estate professionals to share information about properties available for sale or rent. MLS listings contain detailed information about properties, including photographs, descriptions, and key features, making it easier for buyers, sellers, and agents to find and market properties.
A mortgage is a type of loan used to finance the purchase of real estate. It is secured by the property being purchased, which serves as collateral for the loan. The borrower (mortgagor) agrees to repay the loan amount, plus interest, over a specified period, typically 15 to 30 years. If the borrower fails to repay the loan according to the terms of the mortgage agreement, the lender (mortgagee) has the right to foreclose on the property to recover the outstanding debt.
A fixed-rate mortgage is a type of home loan where the interest rate remains constant for the entire term of the loan. This means that the borrower’s monthly mortgage payment remains the same, providing stability and predictability over the life of the loan. Fixed-rate mortgages are popular among homebuyers who prefer the security of knowing their housing expenses won’t change over time.
A variable-rate mortgage, also known as an adjustable-rate mortgage (ARM), is a home loan with an interest rate that can change periodically over the life of the loan. The initial interest rate is typically lower than that of a fixed-rate mortgage, but it can fluctuate based on changes in a specified financial index, such as the prime rate or LIBOR. Variable-rate mortgages often have lower initial payments but carry the risk of higher payments if interest rates rise in the future.
An appraisal is an unbiased estimate of the fair market value of a property, conducted by a licensed appraiser. Appraisals are typically ordered by lenders to determine the value of a property before approving a mortgage loan. Appraisers consider factors such as the property’s location, size, condition, and comparable sales in the area to determine its value.
A home inspection is a thorough examination of a property’s condition, conducted by a qualified inspector. Home inspections are typically performed at the request of the buyer during the due diligence period of a real estate transaction. Inspectors evaluate the structural integrity, electrical, plumbing, HVAC systems, and other components of the property to identify any defects or safety concerns.
Earnest money is a sum of money provided by a buyer to demonstrate their serious intention to purchase a property. The earnest money deposit is typically held in escrow and is applied towards the down payment or closing costs at the time of closing. If the sale falls through due to a valid reason specified in the agreement, the earnest money may be refunded to the buyer.
A title search is an examination of public records to determine the legal ownership and history of a property’s title. Title searches are typically conducted by a title company or attorney to identify any existing liens, encumbrances, or defects that could affect the transfer of ownership. The goal of a title search is to ensure that the seller has the legal right to sell the property and that the buyer receives clear and marketable title.
Homeowner’s insurance is a type of property insurance that provides financial protection against damage or loss to a home and its contents. Homeowner’s insurance policies typically cover risks such as fire, theft, vandalism, natural disasters, and liability for accidents that occur on the property. Mortgage lenders often require borrowers to maintain homeowner’s insurance as a condition of the loan to protect their investment.
A counteroffer in real estate occurs when the seller responds to a buyer’s initial offer with modified terms or conditions. Instead of accepting or rejecting the buyer’s offer outright, the seller proposes changes to the price, closing date, contingencies, or other terms of the sale. This initiates a negotiation process between the buyer and seller until both parties reach a mutually acceptable agreement.
Amortization is the process of paying off a debt, such as a mortgage loan, through regular payments over time. Each payment consists of both principal and interest, with the majority of early payments going towards interest and gradually shifting towards principal as the loan matures. Amortization schedules outline the breakdown of each payment, showing how much goes towards principal reduction and how much goes towards interest.
A home warranty is a service contract that provides coverage for repairs or replacement of major home systems and appliances in the event of mechanical failure due to normal wear and tear. Home warranties typically cover items such as HVAC systems, plumbing, electrical systems, kitchen appliances, and water heaters. Homeowners pay an annual premium for the warranty and may also be responsible for a service call fee for each repair request.
HOA stands for Homeowners Association. An HOA is a governing body responsible for managing and maintaining common areas and amenities within a residential community or development. Homeowners within the community are typically required to pay monthly or annual dues to the HOA to cover expenses such as landscaping, maintenance, insurance, and community services. The HOA also establishes rules and regulations, known as covenants, conditions, and restrictions (CC&Rs), to maintain property values and uphold community standards.
PMI stands for Private Mortgage Insurance. PMI is a type of insurance that protects lenders against financial losses in the event that a borrower defaults on their mortgage loan. PMI is typically required for borrowers who make a down payment of less than 20% of the home’s purchase price. The cost of PMI is added to the borrower’s monthly mortgage payment and is automatically canceled once the loan-to-value ratio reaches 78%.
Foreclosure is a legal process through which a lender repossesses and sells a property to recover the unpaid balance of a mortgage loan when the borrower fails to make mortgage payments as agreed. Foreclosure typically involves court proceedings and can result in the forced sale of the property at a public auction. The proceeds from the sale are used to satisfy the debt owed to the lender.
A closing disclosure is a document provided to the borrower by the lender at least three days before the scheduled closing of a mortgage loan. It contains detailed information about the terms, costs, and conditions of the loan, including the loan amount, interest rate, closing costs, and any prepaid expenses. The closing disclosure is designed to help borrowers understand the financial implications of the loan before finalizing the transaction.
A duplex is a residential building divided into two separate living units, each with its own entrance, kitchen, bathroom, and living space. Duplexes are commonly owned by a single property owner who may live in one unit and rent out the other, or they may be owned by separate individuals or families. Duplexes are often sought after for their potential rental income and investment opportunities.
A condominium, or condo, is a type of residential property where individual units are owned by individual homeowners, while common areas and amenities are jointly owned and managed by a homeowners association (HOA). Condo owners typically pay monthly dues to the HOA for maintenance, repairs, and management of shared facilities such as pools, gyms, and landscaping. Condos offer the benefits of homeownership with less maintenance responsibility than single-family homes.
A townhouse is a multi-story attached dwelling unit that shares one or more walls with neighboring units. Townhouses are typically part of a larger development or community and may be individually owned or part of a homeowners association. Townhouse ownership includes the interior and exterior of the unit, as well as any yard or outdoor space. Townhouses often offer a combination of privacy and community amenities, making them popular among homeowners seeking a balance between independence and shared resources.
