As a newcomer to the world of home buying in downtown San Diego, you will likely notice real estate and mortgage professionals use quite a few unfamiliar terms. As one of the most important sectors of the American economy, real estate overlaps the fields of law, finance, and compliance. For this reason, it is important to understand some of the vocabulary used by realtors, lenders, and title insurance agents. When searching for 92101 condos for sale, don’t hesitate to ask your real estate agent about terms that are new to you. Here are a few terms to get you started.
Active with Contract (AWC)
When you come across a listing that indicates the home is AWC, the seller has already entertained an offer from another prospective buyer but is willing to hear from others in case the deal does not go through.
Assessed value is not the sales price or even the appraised value of the property. It is the determination made by the San Diego County assessor for taxation purposes, and it is often lower than you expect.
Back on the Market (BOM)
A BOM property should be approached with a certain degree of caution and with advice from a 92101 real estate professional. Something happened the first time around and the sale was not completed.
You will find out there are many items you are expected to pay before taking possession of your new home. These items are known as closing costs, and they can be negotiated to a certain extent with your mortgage loan officer. Payment of these costs is settled at the closing table.
Multiple Listing Service (MLS)
You will hear MLS mentioned quite a few times during your home search. This centralized digital service provides accurate information about available homes on the market.
Principal and Interest
When you get to the closing table, a title agent will tell you how much you are expected to pay each month for your mortgage, and part of this payment will be the principal amount you borrowed plus the interest you agreed to. In some cases, you may only pay interest for a few years.
This policy protects the lender from errors related to the conveyance of title to your name. You pay the cost of insuring your lender, but you can also get an owner’s title insurance policy for your own peace of mind.
Real estate vocabulary can be challenging to understand no matter what type of property you’re looking for. Whether your tastes lean more toward condos in East Village or you’re partial to lofts in Cortez Hill, San Diego is a wonderful place to live. If you’re interested in seeing the latest properties on the market in the downtown San Diego area, get in touch with 92101 Urban Living today at 619-649-0368.