One would think you could call up a lender, tell them you’d like to get a mortgage and have a pretty straightforward and clear conversation. Same would go for talking to the Sales Reps in the model, right? Sure…until they start throwing things at you such as:
- Lender: Are you interested in an ARM? You: Hmm…I have two, do I need more?
- Lender: Would you like a loan that has a balloon? You: Ummm…will the balloon have cash in it?
- Lender: Maybe you would like the type of loan that has convertibility options? You: Well, would that mean I can change the type of loan when the weather is nice?
- Sales Rep: We will need earnest money with the contract. You: What kind of money is that?!
- Sales Rep: We offer 2 walk-thrus of your home while under construction. You: Won’t I be walking thru my home a lot while it’s being built? (By the way, not without a sales rep or production supervisor. Please don’t wander thru the house at any given time without permission!)
- Sales Rep: We have seen great appreciation for our homes in this community! You: I hope people appreciate these homes…they’re beautiful!
Ok, so maybe those aren’t exactly your thoughts but there is a world of terms and acronyms out there specifically related to purchasing and financing a home. It is important to familiarize yourself with these terms so you can have that conversation and not be left in the dust while trying to figure out what everyone is talking about.
Here is an article with a brief dictionary of the most common terms you will encounter brought to you by the National Association of Home Builders. Become familiar with these terms and remember, if you don’t understand something you’re told, ASK! The last thing you want is to find out you signed on to something and it’s not what you were expecting.
Good Luck and Happy House Hunting!