If you’re in the market for a new home in London, Ontario, there are a lot of terms that you’ll need to know in order to make the process go smoothly. Certainli Realty is here to help you understand the home buying process from start to finish. Here are four key terms that you should be familiar with before you start shopping for your new home. Contact us today!
A mortgage is a loan that you take out in order to purchase a property. The property itself serves as collateral for the loan, which means that if you default on your mortgage payments, the lender can take ownership of the property. Mortgage loans are typically repaid over a period of 15-30 years.
Mortgage
A down payment is the portion of the purchase price that you pay in cash, up front. The remaining balance is typically financed through a mortgage loan. Down payments typically range from 3-20% of the purchase price, depending on the lender.
Down Payment
Escrow is an account that is set up by the lender in order to hold funds for the down payment and/or closing costs. This account is typically funded by the borrower and is used to pay these expenses when the time comes.
Escrow
Closing costs are the various fees and expenses that are associated with the purchase of a property. These costs can include things like loan origination fees, appraisal fees, title insurance, and more. Closing costs are typically paid at the time of closing, which is when the sale of the property is finalized.
Closing Costs
Let Certainli Realty make your home buying process easy. We are here to walk you through every step and ensure your needs are taken care of. Reach out today!
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