Knowing mortgage definitions and terms can give you a heads up when buying or selling property or when applying for a home loan, a business loan, or refinancing your current mortgage.
The more knowledge you take into the process, the easier it to decipher what is being written or said. When a loan officer or a realtor talks to you, in many ways, they may sound as though they are talking in a foreign language because the terms they use may not be the language you hear every day.
And reading what they ask you to sign, and understanding it, may make very little sense to you. Yet, what you sign when you are getting a loan or buying and selling property will have a huge effect on you for many years to come.
Most people take for granted that their realtor or loan officer is honest, and most of them are. But their are some who are in the business just to make a quick buck. After all, they are salespeople and their jobs are to sell.
Many of the documents that you will have to sign are really not self explanatory and even if your realtor or loan officer does go over all of them with you, in many cases, there will still be some that you won't understand.
You are not alone. Most people depend on their realtor or their loan officer, or both, to get them through the process. But you have to take some initiative and acquire at least some basic knowledge of what is going on because you are going to want to have some peace of mind at the end of the day.
You are going to see deposit receipts, loan applications, loan documents, escrow instructions, title documents, insurance forms, appraisals, termite reports, environmental reports, and other documents that are associated with the transaction.
There are a lot of signatures required and you will see a lot of terms that are used over and over again. But there are some very important terms that you may see only once or twice during the whole process.
In the realm of the mortgage world, knowledge is the key to understanding and protecting yourself and your interests. When you get a loan on property, it's not about who you know, it's all about what you know and how you use your knowledge.