Very Important Terms You Need to Know When Buying Property in the United States

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We Chinese often say that we should be clear and explicit when doing business, but in the process of real estate transactions, we are often confused by many real estate terms. Today, we have sorted out the terms you need to know when buying a house in the United States.

 

The property history records all the records of the property since its first public and legal transaction, so that investment buyers can fully understand the transaction history of the property and use it as a reference for future purchases.

 

ARM, also known as fixed-period variable rate loan, refers to a pattern in which loan interest rates change cyclically. Common terms include 1 year, 3 years, 5 years and 7 years. Most mortgage interest rates have a maximum cap.

 

This is a way to buy a house by borrowing from a bank or loan company. It can help investors reduce the pressure of buying a house in a short period of time and obtain the property rights of the house first. After that, the investor only needs to repay the debt within a fixed period of time according to a certain interest rate.

 

Before buying a house, we all need professional appraisers to conduct a market evaluation of the property we want to buy. This includes the transaction history of the house, the transaction price and rental price of surrounding houses in recent years, etc. You don't need to worry about these issues. fang88 will recommend you the best broker to help you complete the evaluation.

 

The transaction is closed when the entire process of purchasing a house is completed. Generally speaking, the transfer of ownership of a house is time-limited. The buyer and seller need to complete all the procedures and sign relevant documents within the time agreed upon before, and then complete the payment process.

 

When investing in a home in the United States, in addition to paying the seller for the house, you also need to pay some other related fees. The more common ones include house appraisal fees, house property protection fees, property taxes, and attorney fees.

 

Before conducting a house transaction, the buyer and seller need to jointly draft a contract. At this time, both parties can propose certain clauses to protect their own rights and interests.

 

The general conditions include the following three points:

 

1. Loan contingency: conditions attached to the loan, mainly for possible problems that may arise during the loan. However, if the purchase is made in cash, this clause is generally not required.
2. appraisal contingency: appraisal contingency;
3. Home inspection contingency: conditions attached to the home inspection Note: Generally speaking, the buyer has 17 days to remove all contingencies after entering the transfer process. That is to say, if the loan is not obtained within 17 days, or the expert valuation is not in place, or the buyer is not satisfied with the home inspection, the buyer can cancel the contract and get back the deposit.

When buying a second-hand house in the United States, most of the time, buyers need to bid for it. We can first provide the seller with an offer and terms. If the seller rejects our terms but still hopes to continue negotiating with us, he needs to reply to us with a Counter-Offer.

 

Generally refers to our traditional mortgage, which is not insured or guaranteed by the federal government. Debt-to-Income Ratio - A measure of total debt. The calculation method is to divide the monthly total income by the monthly payment amount including the mortgage.

 

This situation is relatively rare in the process of buying a house. Generally, it means that an individual or group has the right to use your property for a special purpose or reason, or a part of your property will be restricted from use. For example, if the fruit tree in your backyard blocks the light of your neighbor, then your neighbor has the right to ask you to remove the fruit tree.

 

In the United States, the funds in the process of house purchase will be held by a third party, which is called Escrow. Generally speaking, only after the buyer and seller have fulfilled their obligations according to their contract, the third party will pay the funds to the seller or bank and loan company.

 

A type of mortgage in which the interest rate remains the same throughout the term of the loan.

Home Inspection

 

Before we decide to buy a house, buyers need to ask professionals to inspect the house, including evaluating the quality and safety of its plumbing, heating, wiring, electrical appliances, roof, foundation, etc.

 

The United States is a country with a strong sense of insurance. Many homeowners will purchase homeowner insurance before trading their homes. Homeowner insurance is mainly to protect homeowners and lenders from losses, including personal accidents or property loss.

 

A mortgage means that if you buy a house with a loan but fail to repay the loan on time, the bank or loan company has the right to seize your house as collateral.

 

Generally, good second-hand houses need to be purchased through bidding, so the final transaction price is often higher than the bid of the house itself and the government's valuation. The final transaction price is called the market price of the house. When we make an offer to the seller, the market value of the surrounding houses is a very good reference.

 

Mortgage insurance is usually purchased by home buyers to protect the interests of investment buyers in case the bank or company that provides the loan defaults.

 

The title transfer date is the date when the investment buyer officially owns the purchased property. The specific date will be stated in the purchase contract, which is usually a few days after all payments and transfer procedures are completed.

 

A pre-approval letter is a letter issued by a lending bank or company to an investment buyer to prove that the investment buyer has the ability to pay and purchase the property, and that the lending company and bank are willing to provide financial support to the investment buyer. Generally speaking, in the United States, only when the seller has a pre-approval letter will they be willing to discuss other matters with the investment buyer.

 

Title refers to the rights and ownership of property. Titles or deeds are usually used to prove ownership of land.

 

Title insurance is used to ensure the accuracy of the title and to protect the lending bank or company and the investment homebuyer from legal problems regarding the title.

 

U.S. federal government law requires lenders and lending banks or companies to fill out declaration forms truthfully and indicate the total amount of the loan and other information.

 

A historical review of all legal documents relating to the title to the property to determine if there are any errors.