Jamaica Estates Real Estate: Learning Your ABCs (and Ds!)
If you are entering the Jamaica Estates real estate market, you’ve probably noticed that real estate professionals speak a different language. You might have even plastered an understanding smile on your face while having no clue what your agent or mortgage broker is trying to tell you!
As you can imagine, this is not ideal. Whether you are buying or selling a piece of Jamaica Estates real estate, it’s critical to understand what’s happening to your money.
We are here to help! Let’s start small with four must-know industry terms to bring you up to speed on common real estate lingo:
- Appraisal: An appraisal assigns an unbiased value to a property for sale. This process helps the lender determine if the property is worth the value of the loan that the buyer is attempting to secure. The buyer typically pays for the appraisal.
- Bridge loan: In real estate, sales and purchases rarely time out the way you want them to. This is where a bridge loan can be a lifesaver. It is a short-term loan that allows buyers to place a contingency-free offer on a prime piece of Jamaica Estates real estate. There are pros and cons to this setup, so connect with an experienced mortgage broker to get your facts straight.
- Closing costs: Closing costs are a collection of fees paid at the end of your Jamaica Estates real estate journey. This includes title, attorney and insurance fees, as well as taxes and agent commissions. The buyer typically bears the brunt of the closing costs.
- Debt-to-income ratio: The debt-to-income ratio, or DTI, helps lenders determine how much you can afford for a monthly mortgage payment. It takes your monthly debts, including a potential house payment, and divides them by your monthly income. Lenders typically look for a DTI of less than 36%.
Now that you know the ABCDs of Jamaica Estates real estate, check back with us to learn the EFGHs! If your vocabulary lesson can’t wait, get in touch with Jamaica Estates Realty to bring clarity to your real estate transaction.
Contact us at (718) 380-5000 today or email us here to learn more.