The Real Estate Roadmap (10 terms to know)

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Real estate can:

- Settle your family.

- Grow your net worth.

- Help you build wealth faster.

Unfortunately, real estate terms can be confusing.

Breaking It Down

Not feeling comfortable with real estate lingo can result in:

- Renting long term.

- Not becoming an owner.

- Not owning a rental property.

Of course not everyone wants these things.

Especially with higher interest rates and higher home prices.

But things may be changing..

Condo prices have been falling in many cities lately:

When I got a loan to buy my first little condo.

I didn't have much money.

And didn't know what the heck I was doing.

Little did I know it would lead to getting loans to buy 6 more properties.

And many mistakes along the way.

I loved real estate so much—

I found myself working at Chase Bank for 10 years (doing loans for other people.)

A big part of the real estate game is making sense of how it works:

Another part is learning the 10 most popular real estate terms.

Let's dive in:

1. The Loan Officer

A loan officer helps you get approved for a home loan.

They check things like:

- Your credit.

- Your assets.

- Your income.

Most loan officers work on commission.

So they're usually motivated to help you get approved for a home loan.

They can also help explain first-time homebuyer programs (there's over 2,000+ programs).

Loan officers help you make sense of home loan programs and help you get approved.

2. The Loan Processor

A loan processor works hand in hand with your loan officer.

They help:

- Collect your documents.

- Give you status updates.

- Answer your questions.

Loan processors are your 2nd point of contact when you apply for a home loan.

3. The Buyer's Agent

A buyer's agent is a real estate agent that helps a home buyer.

They help with:

- Finding a home for sale.

- Looking at the home.

- Making an offer.

Plus many other things like filling out paperwork and helping you negotiate the details.

Buyer's agents help you go from finding a home to getting the keys.

4. The Seller's Agent

A seller's agent is a real estate agent that helps a home seller.

They help with:

- Deciding on a sales price.

- Advertising the home.

- Negotiating.

Plus many other things like getting the home ready to sell and communicating with interested buyers.

Seller's agents help you go from listing your home to handing over the keys.

5. The Escrow Company

An escrow company handles most of the paperwork when buying or selling a home.

(sometimes an attorney is used instead of an escrow company)

They help with:

- Collecting paperwork from the buyer, the seller, the loan officer, the real estate agents.

- Helping with the transfer of the property from the seller to the buyer.

Escrow companies work with everyone that is involved in the home sale.

6. The Title Company

A title company works with the escrow company when buying or selling a home.

They help with:

- Checking to make sure the seller of the home is the actual owner.

- Advising the local government you are the new owner of the home.

Title companies handle a lot of the legal things involved with home buying.

7. The Home Inspector

A home inspector reviews the condition of the home you want to buy.

They visit the home for 1-3 hours.

And they provide a detailed report covering many of these things:

Home inspectors give you a 25-50 page report on the home you want to buy.

8. The Appraiser

An appraiser reviews and estimates the value of the home.

They visit the property for 30 mins to 2 hours.

And provide a detailed report covering:

- What similar homes in the neighborhood are selling for.

- How much they think the home is worth.

Appraisers give you a 25-50 page report on the home you want to buy.

9. The Underwriter

An underwriter works with your loan officer and officially approves your home loan.

At the beginning of your home loan journey.

Your loan officer will give you a "loan pre-approval" after reviewing all of your documents.

Once you find a home.

The underwriter is responsible for the final sign-off of your home loan.

You can then schedule the closing on your home.

Underwriters are the last set of eyes to review and approve your home loan.

10. The Notary

A notary witnesses and helps you sign your final loan documents.

They help with:

- Explaining your documents.

- Being a "witness" at your loan signing.

Notaries help you through the finals steps of your home loan journey.

The Bottom Line

Buying a home or a rental property can be confusing.

It can be super stressful.

But I've found people that learn the real estate roadmap and 10 most popular real estate terms before home shopping are often:

- Less stressed.

- Better negotiators.

- Able to buy a home sooner.

I hope this little cheat sheet is useful.

Keep building 💰

See you next week.