Important Real Estate Terms You Should Know

savings-440782_1280Regardless if you decide to hire a real estate agent to help you buy/sell your home or not, there are some key terms to know when it comes to real estate. Out of those key points, here are 3 real estate terms to know as you move forward in your home buying/selling process.

Pre-approval Letter.  Even before you start your search, you should speak with your bank, credit union, or a mortgage lender to find out what kind of home loan you qualify for. This information can help you and your real estate agent (if you choose to hire one) understand how much of a home you can afford. Another important issue you need to talk with you loan officer or mortgage lender about is closing costs and other fees to make sure they will be covered in your loan.

Fixed rate vs. Adjustable mortgage rate. As it sounds, a fixed mortgage rate is unmovable whereas an adjustable mortgage rate is subject to change throughout the course of the loan. Talk with your bank, loan officer, or credit union to find out which option is the best fit for you.

Buyers agent vs. Real estate agent. Real estate agents, also known as sales agents, are licensed to advise people on real estate issues. Most states require a real estate agent to complete a real estate course and pass a state and federal exam.

If you are interested in becoming a licensed sales agent in Utah please check out Utah Department of Commerce: Division of Real Estate for the necessary requirements and for further education check out the available courses for new agents.

Broker’s, on the other hand, are required to have more education and pass the brokers exam. Brokers are more liable and legally responsible for any mistakes made by agents or salespeople who work for them. If you are interested in becoming a broker in Utah visit Broker Registration site on the Utah Department of Commerce: Division of Real Estate page.