Condo Buying Terminology: A Cheat Sheet

Buying a condo or home shouldn’t be rocket science. You find the perfect place, make an offer to the seller, pay a couple of fees, and bam! You just bought a home.

However, buying a condo actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Are Realtors and real estate agents even speaking English anymore?

To help you out, we’ve come up with a cheat sheet so you’ll know exactly what we are talking about when we explain the buying process.

Pre-Approval

If you meet with an agent before you begin looking for condos, they’ll likely recommend you get pre-approved for a mortgage. Mortgage pre-approval is the best first step, because it essentially sets your budget for you.

Pre-approval involves sitting down with a lender to discuss your financial portfolio. This includes your credit score, borrowing history, outstanding debts, annual income, and any assets you have. After reviewing all of this, the lender gives you an exact number: that’s how much the bank is willing to lend you.

Not only is your budget set, sellers will take you more seriously because they know you can qualify for enough loan to support your offer. (more…)