Real Estate
The decision to purchase a home is one of the most difficult and important decisions that people make in their lives. Whether a first time home buyer, upsizing from your last home, or downsizing from your last home, it can be a long and tedious process. It is important that you consult an attorney during your home buying experience. The purpose of this portion of the web site is to provide some general information to its visitors regarding real estate law and purchasing a home. It strives to provide the most up-to-date information to its visitors as laws regarding real estate do change.
What is the purpose of a real estate purchase contract?
A real estate purchase contract specifies the terms of purchase for both the buyer and the seller. It stipulates the date by which the purchase must be completed, the commission that will be paid to the real estate agent(s), any special conditions regarding the house such as appliances, and any financial conditions that the buyer is setting forth – such as the seller will pay a certain dollar amount in closing costs. In addition, this contract will specify the amount of deposit the buyer will pay to hold open the contract.
What is a mortgage?
A mortgage is a legal document that secures the note of the bank loan and gives the lender a legal claim against our house if you default on the terms of the note. You have possession of the property, but the lender still has an ownership interest in the property. In Virginia, the legal document to secure the realty is called a Deed of Trust.
What are the lengths of mortgages?
There are different types of mortgages that last for different lengths of time. Some of these mortgages are:
- Fixed rate mortgage: This loan is typically for a fixed number of years, for example 20 or 30 years. With a fixed rate mortgage, your interest rate does not change over the life of the loan.
- Adjustable-rate loans: The interest rate for these mortgages varies over time to keep it in line with changing market rates. When interest rates go up, your mortgage payment may go up, and vice versa. There is a cap as to how far up or down the interest rate may change with your mortgage.
- Government loans: There are many different types of government loans. Some of these include FHA loans, VA loans, RHS loans, and other state and local loan programs. For more information about these types of loans, you should consult your local bank or other agency.
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