Buying a house is an exciting experience. But if you do not know the meaning of the terms used in the purchase of a house, this experience can become a difficult task. In fact, for some people, understanding the related terms can be the most complicated part of the process. Here we give you five common terms about real estate.

Escrow Deposit in reserve

According to the Office for Consumer Financial Protection, the guarantee is a fund to which the buyer provides money in order to pay taxes and property insurance on the property what is being bought At the time of establishing the mortgage, an initial deposit is made   in order to establish this fund. A company specialized in trusts guards the deposit until the purchase of the house is completed. Then, the expenses of taxes and insurance are added to the monthly payment of the house. If the buyer prefers, these expenses can be paid in full at the time of closing the purchase of the house.

Appraisal Appraisal

An appraiser can help you examine the property, considering the initial price of the house and comparing it with recent sales of similar properties. The appraisal can help ensure that the sale value of the house corresponds to its market value. In addition, the lender that issues the mortgage usually requires this appraisal to help determine the amount of your loan.

Title Insurance: Title insurance

Owner title insurance helps protect the purchase and sale of any problems you may have that are alien to potential new owners. For example, a debt not paid to a previous contractor or taxes that previous owners did not pay. Title insurance has two parts: one protects the buyer and another protects the lender. The safest thing is that you need a title insurance if you are going to take out a mortgage.

Appraisal Appraisal

An appraiser can help you examine the property, considering the initial price of the house and comparing it with recent sales of similar properties. The appraisal can help ensure that the sale value of the house corresponds to its market value. In addition, the lender that issues the mortgage usually requires this appraisal to help determine the amount of your loan.

Title Insurance: Title insurance

Owner title insurance helps protect the purchase and sale of any problems you may have that are alien to potential new owners. For example, a debt not paid to a previous contractor or taxes that previous owners did not pay. Title insurance has two parts: one protects the buyer and another protects the lender. The safest thing is that you need a title insurance if you are going to take out a mortgage.