Have you considered buying a home, but the jargon scared you off? Well, you are not the only one. We have put together a list of the most common explained words from our New Home Specialists.
Pre-Qualification – The first step in the mortgage step is to get pre-qualified. When you are pre-qualified, you will know the amount of a loan you will qualify for; however, this is not a guarantee that you will get approved at that amount.
Pre-Approval – The next step in the mortgage process is to get pre-approved. This conditional commitment will let you know the actual value that will get approved.
Designer Home – Our Designer Homes are our inventory homes whose selections have been curated by our interior designer. Depending on the building stage of the home, custom selections may be accepted if not already chosen.
Premier Home – Our Premier Homes are custom homes whose floorplan, selections, and upgrades have been selected by our customers.
Contingency – This is a clause written into the contract that the condition of buying the house depends on certain circumstances. The offer was accepted, and the contract was signed, but the agreement states that a specific criterion must be met. For example, there might be a contingency clause that reads the buyer must sell and close on their current home before they purchase the new home from the seller.
Appraisal – An appraisal is a professional opinion evaluating a home’s worth. The examination is used to determine whether the home’s contract price accurately depicts the home’s value given the home’s condition, features, location, and more. This lets the lender know that the transaction is worth the loan’s value.
Inspection – The home inspection is a visual examination of the home and is objective. The inspector looks at the entire structure from the roof to the foundation. A standard home inspection report will cover structural components, basement, and foundation, floors, doors, windows, heating, cooling, plumbing, electrical, roof, attic, and insulation. The inspection can take from 2 to 4 hours, depending on the square footage and the home’s condition. A few days after the inspection process, they should send their report with their examination details attached with photos, analysis, and recommendations.
Selections – The selection of the home consists of colors, flooring, light fixtures, countertops, and appliances. If you buy a Premier Home, you will have more selections with the home and the listed options. You will also be able to choose your front door, garage doors, and a few more options. If you are buying a Designer Home, you may be able to select some selections depending on the building stage of the home. You will meet with our interior designer, and they will guide you to options that will coordinate with each other.
Redline – When you build a Premier Home with us, you get to decide many options about the house. The Redline is a meeting in that we have to go over the details of the floor plans and mark redlines on the changes to the plans to finalize the build instructions.
Radon – Radon is a radioactive gas. It is released from water, soil, and rocks. It is tasteless, colorless, and odorless. It is also the number two cause of lung cancer after cigarettes. Small amounts of radon are o to have in your home. It is when the levels get high that they could be problematic. It is highly recommended that you get your home tested for radon during the selling process. If the home shows high levels of radon, there are actions that can be taken to lower the levels.
Easement – There are a lot of different types of easements. An easement is tied to the tile, legally allowing someone else access to a particular area of your property for a specific purpose. For example, an easement with the utility companies will allow them to come in and assess the electrical or sewage line that is underlying your property.
SEER – Is an acronym for Seasonal Energy Efficiency Rating. SEER rates the efficiency of your home’s heating and air by calculating the output for the typical season divided by the total energy input during the same time. Think of your car’s mileage; it is the same thing just for energy for your heating and air.
Zoned HVAC – A Zoned HVAC system allows the homeowner to be able to control their heating and cooling on each level of their home separately. This allows for correct temperatures by having a thermostat on each level of the home. It will also save the homeowners on their heating and cooling bills in the long run.
When you are buying a home with us we want you to have an ease of mind. If there is something that is being said or something you do no understand, we are here to help you through the process and explain everything to you as it arises.