Guys, to make it in the real estate game there are certain terms you need to know to get ahead, make your mark and remain professional.
So, to help you on your journey to real estate investing enlightenment, here are five essential terms you should know.
Amortization: The process of combining both interest and principal in payments, as opposed to simply paying off interest at the beginning. Amortization allows you to build more equity in the home early on.
Buyer’s agent: The particular agent that represents the buyer in the home-buying process. On the other side of the coin is the listing agent, the person that represents the seller.
Cash reserves: The money remaining for the buyer after the down payment and the closing costs.
Escrow: This is an account that the lender sets for the purpose of receiving monthly payments from the buyer.
Principal: The sum of money borrowed to buy a home. Paying off the principal gives the buyer the power to build equity in a home. The principal is combined with interest to determine a monthly mortgage payment.
I hope this has served to give you a reference for your own real estate pursuits - and if you'd like a full glossary of terms - stay tuned because I'll be publishing it on my official blog and website in the coming weeks.
~Mr Marcelle