What is the difference between a mortgage pre-approval and a pre-qualification?
Pre-approval involves a more detailed financial review by a lender and gives you a better estimate of your loan amount, whereas pre-qualification is a basic assessment of your financial status to give an initial estimate of the loan you might receive.
What is a home appraisal and why is it important?
A home appraisal is an expert's estimation of a property's market value, based on factors like location, condition, and features. It's crucial for ensuring a fair and accurate price during a real estate transaction.
What is a contingency in a real estate contract?
A contingency in a real estate contract is a clause that requires a specific condition to be met before the contract becomes legally binding. This could include things like obtaining financing, a satisfactory home inspection, or the sale of the buyer's current home. Contingencies provide a level of protection for both the buyer and seller, allowing either party to back out of the contract if the conditions aren't met.
What is the difference between a buyer’s agent and a listing agent?
A buyer's agent represents the interests of the homebuyer in a real estate transaction, whereas a listing agent represents the seller, focusing on marketing and selling the property.
What is title insurance and why is it necessary?
Title insurance protects both lenders and homebuyers against potential losses due to disputes over property ownership. It ensures the property title is legitimate and covers legal costs in case of title disputes.