Question by Front Desk: Im buying a house can someone explain the big words of a home process definitions of words they use like FHA?
FHA LOANS
ESCROW
closing costs
EARNEST MONEY
what are all the big words they use and what do they mean? dont just answer the ones i listed answer all the big words they use in the process of buying a home
thanks soo much
Best answer:
Answer by Gaytheist Buddha
Good luck with your homework assignment. You can learn more about the home buying process by reading “Home Buying for Dummies” available from your public library or independent bookseller (and Amazon and BN.COM).
You could also find definitions for those terms in your textbook. Good luck!
Know better? Leave your own answer in the comments!
FHA loans are loans backed by the government. If you are a home-buyer and if the home qualifies for an FHA loan, you only need 3.5% down payment to purchase the home.
An escrow is an account set-up with a escrow company which handles many aspects of a real estate transaction. Once an agreement has been met, they will provide the escrow instructions, order a preliminary title report, provide HUD statements, deposit the earnest money in a trust account, etc…
Closing Costs are the cost involved to close the deal. There are a lot of costs involved so a good faith closing costs is provided to both the buyer and seller. This too is handled by the escrow company.
Earnest money is the money being put into escrow to show the seller that the buyer is serious and has the money. I call it the good faith deposit.
Hope that helps! Good luck.
http://en.wikipedia.org/wiki/FHA_loan
An FHA loan allows low income Americans to borrow money to purchase a home they otherwise cannot afford.
http://en.wikipedia.org/wiki/Earnest_payment
Earnest money (sometimes known as good faith deposit or earnest deposit) is a deposit towards purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase.
http://en.wikipedia.org/wiki/Escrow
Escrow is best known in the United States in the context of real estate (specifically in mortgages where the mortgage company establishes an escrow account to pay property tax and insurance during the term of the mortgage).
http://en.wikipedia.org/wiki/Closing_cost
The point in time at which the contract is actually executed and the title to the property is conveyed to the buyer is known as the “closing”. It is common for a variety of costs associated with the transaction (above and beyond the price of the property itself) to be incurred by either the buyer or the seller. These costs are typically paid at the closing, and are known as closing costs.
—
You can Google these words and you’ll find other info on them.
At the huge risk of answering this Q and losing the chance for being voted best answer, here’s my answer: Anyone who has the ability to join, and then submit a Q on YahooAnswers, has the ability to type each subject word into the Google search box – then get not just definitions, but thorough explanations.
P.S. If you’re buying a house, do your homework. Meaning, this Q of yours shows you to be somewhat slack or lazy, and that will not serve your personal interest well in something as big as a house purchase.