You’re ready to start your property search and purchase your first condo in Beacon Hill. Before diving in head first, do a little light reading and educate yourself on common real estate terms. Having a basic understanding of industry jargon will make communication with your agent a two-way street and will bring a few very important aspects of property buying to your attention.
Pre-approval
– Before you actually start looking at properties, it’s a good idea to obtain a pre-approval letter from the bank. This will give you an idea how much you can afford and let’s a seller know you’ll be able to secure a loan when needed.
Cumulative interest
– The sum of all interest paid on a loan over a designated period of time. Although this isn’t the only reason to choose one type of loan over another, it can help first-time buyers make an economical loan choice.
Contingencies
– When making an offer on a property, buyers can include certain specifications that must be met prior to purchase. If you’re planning on buying a condo, your contingencies might include a full review of the building’s budget and expenditures, minutes from past HOA meetings, and balance sheets.
Closing costs
– Most buyers mistakenly think the down payment is the only upfront cost when buying a condo. Don’t overlook closing costs. This typically is 2-5% of the condo purchase price. Other fees buyers will need to cover include title insurance, loan processing fees, and excise tax.
Title insurance
– Most lenders require buyers to purchase title insurance to protect both parties from any property ownership disputes that could result in loss. Title insurers make sure the seller had the right to sell the property and there are no current liens like unpaid taxes.
When you’re ready to start your search, take a look at our properties in Beacon Hill, including Beacon Hill condos, lofts, and penthouses. You can also give us a call to speak with one of our knowledgeable Beacon Hill real estate agents.
