The Vocabulary of Real Estate

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Filed under: Market Comentary

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Every industry has unique acronyms and terms that are used to talk about business, and real estate is no different. If you aren’t familiar with the industry terms, then it might feel like you need a translator to understand the conversations about buying or selling a home. At Franklin Loan Center, we always take the time that is needed to explain the concepts and ensure that everything is communicated in an easy-to-understand format.

Here are a few details to help you understand some of the common terms in the industry:

Opening an Escrow

“Escrow” is a word that is commonly used… and it is commonly misunderstood as well. When someone is buying a house or doing a refinance, then they are held in escrow before the transaction is finalized. This time is when the cash is brought in, the numbers are checked, deeds are recorded, and we need to make sure that everything balances. We often refer to the beginning of this process as “opening escrow.”

Escrow Account

Another use of the exact same word is when you hear us talk about an escrow account. This process takes a month of taxes and insurance from part of your mortgage payment. Funding this account ensures that the mortgage company has the money that is needed to pay your taxes and insurance costs.

Open Communication with Our Clients

Being in the mortgage industry, sometimes it is easy to take it for granted that we understand what these terms mean. So, we are proactive to ensure that we are conveying this information to our clients. At the same time, our team is always here to answer questions. So, you are welcome to talk to us any time if you have questions about the things that we are discussing.

If you needed a “mortgage-ese” vocabulary lesson, then I’m here to help! Call any time for more information about financing your home purchase. If you learned anything from the message that I shared this week, then I would appreciate it if you share, like, or comment on this video!

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