The CMA, Comparative Market Analysis, is one of the first steps in the selling process, which helps in determining a homes current value for the seller to decide the best sale price. Real Estate Agents will conduct an detailed analysis of like properties as near by to compare and adjust for feature variations. This analysis includes the average priceof recently sold, actively listed, and expired listings that share some, maybe all of the likness of the subject home. This is not the same as an appraisal which is provided by a licensed appraiser.
The term escrow refers to money which is held by a third party on the behalf of both parties to a transaction. An escrow company will tipically hold money, title, documents and even property during escrow until the satisfaction of the transaction.
The term Down Payment represents the amount of money a buyer has set aside to help fund the purchase of a home or property. Most often it is reqired by the mortgage lender to provide a down payment, which can commonly total upto 20% of the value of the subject property. In some cases in can be a lower percentage, such as 10%-5%-3%, and in even more rare cases it is not required at all. The down payment can have a positive effect on the mortgage loan as a whole by allowing the buyer to receive a better interest rate and mortgage terms.
The word REALTOR® is a trademark referring to someone who is a current member in good standing with the National Association of Realtors® (NAR). A Real Estate Agent is licensed to help people buy and sell commercial or residential properties. REALTORS® are Real Estate Agents who have gone one step further to instil confidence in the consumer that they are committed to intergrity and ethics in all real estate transactions.
Though there are exceptions to the rule, most often learning what you can afford is the very first step. This means getting pre-approved for a mortgage is the priority. Having a pre-approval letter for a mortgage demonstrates that you are a serious buyer to both your real estate agent and the seller. Most real estate agents will require a pre-approval before they show listed homes. Often if you are not pre-approved then you will not be ready for shopping, and house can move quickly. Being pre-approved means that if you see something you you like you can take action before it disapears.