Perhaps the most confusing part of shopping for beachfront homes is the terminology that real estate agents, banks, and other intermediaries use. Here are a few of the most common terms that are used for buying property by the beach, or anywhere else for that matter, and what they mean.
Many people, and commercial advertising mortgages, will talk about closing costs. Simply, closing costs are the final costs that are associated with the sale of your home. For most people, there are a myriad of fees that you can be subject to. You may owe fees to escrow services, appraisers, and title agencies, as well as property taxes and lender fees, among other charges.
Basis points are another common term used by the banks to finance your loan. This sounds like an enigmatic term, but really the meaning behind it is quite simple. All a basis point is is one percent of the total price of the beach home you are going to buy.
If you’re buying a home, you also much deal with escrow services and costs. Escrow is the time that exists between when you sign a contract to buy the property until the property is actually yours. This period lasts between 30 and 40 days, so don’t expect to move in as soon as you sign the papers. During the escrow time period, the mortgage is finalized, before you only would have had a pre-approval, and inspections are made. Once everything has been double-checked and finalized, the title is transferred to you and you’re the proud owner of a new beach home.
While knowing the terminology surrounding a real estate sale is great, it’s just the beginning of what you need to learn to find the home of your dreams by the sea. For more information on finding and closing on the house of that you want, visit the Beachfront Property Guide.