Whether you’re a first time homebuyer, or someone currently looking to purchase their third home, the world of real estate can be a little confusing.
How can you be sure you’re getting a good deal? Are there additional mortgage and loan options available? What do all of those abbreviations and acronyms in the listings mean?
As a team of experienced real estate professionals, we hear questions like these every day from clients. The best way to navigate the Metro Detroit real estate market is to hire a professional.
We’ve compiled this little guide to answer some of your most pressing real estate questions! For more information, or to chat about your personal real estate goals, please don’t hesitate to contact us.
How to Get Started
The first step to just about anything is proper research! If you’ve been looking at real estate listings in the area, you’re on the right track!
Reading news articles and real estate resources (like this blog post!) is also a great way to learn more about the market and its happenings. If you ever have any questions about a home or the market trends in the Metro Detroit area, please reach out to us.
What’s in a Mortgage?
Typically, a mortgage is a loan for the amount of money your home is worth.
A conventional mortgage usually requires a 10% down payment, but other options are also available.
If you have a lower credit score, a Federal Housing Administration (FHA) Mortgage offers down payments as low as 3.5%. However, these often require additional mortgage insurance premiums.
VA Mortgages are available for all veterans and active military, and typically have much lower interest rates.
It’s important to find a lender that you trust and have complete confidence in. Contact us for recommended lenders in the Metro Detroit area!
A Breakdown of the Terminology
If you’re reading a home listing and can’t understand one of the words, chances are it’s a real estate abbreviation! What do all of those even mean?
Here’s a list of some of the most common abbreviations and acronyms used by real estate professionals:
- DOM: Days on Market – The number of days that a home has been on the market.
- FSBO: For Sale By Owner – When a homeowner sells their home without a real estate agent.
- CMA: Comparative Market Analysis – An examination of the prices that other properties in the area have sold for.
- POF: Proof of Funds – A document or bank statement that verifies a homeowner’s ability to complete a transaction.
Here are additional abbreviations and acronyms used in property listings:
- GRNO: Ground Maintenance
- HOA: Homeowner’s Association
- OBO: Or Best Offer
- OVER: Oversized Garage
Any Lasting Questions? We’re Here to Help!
If you’re thinking of buying a home in the Metro Detroit or southeast Michigan area, and want to chat about your plans, please reach out to us!
As your local area experts, we’re here to answer your questions, help you explore the community, and find the perfect place to call home.