Terms Every Homebuyer Should Know | Hayden Homes

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February 21, 2017

Terms Every Homebuyer Should Know

It may be the ideal time to purchase a brand new home and Hayden Homes offers new homes in Oregon, Washington, and Idaho.  But before you get started down this important path to home ownership, it’s important that you understand the lingo.  By familiarizing yourself with terms associated with the homebuying process, you’ll have a better understanding of the process and what to expect and won’t be caught off guard as you navigate the process.
Getting Pre-Approved
The most challenging part of buying a home can be seeking out and acquiring a mortgage. One of the first things to do in this process is lender pre-approval.  You can do this with a lender of your choice. When working with a mortgage lender during this initial process, you will find out how much home you can afford to buy prior to ever starting the physical search. This process contains no obligation to the lender or you as the home buyer. Completing this desired first step helps ensure that you are qualified to purchase your new home and will say to your Realtor or home builder that you are serious about moving forward, allowing them to best help you find the home of your dreams.
An appraisal is the process by which the value of the home is determined. This process is done by a qualified and certified appraiser. The process is important for you to know the value of your home but also required by the lender to verify the purchase price is equal to or less than the property value.
Earnest Money
At the time that you make an offer on a home and the seller accepts that offer, you will be asked to put down earnest money. Earnest money is different than a down payment, although the earnest money will be used towards your final closing/down payment costs. Earnest money is a check that’s given to show your good faith effort in securing a loan and commitment to purchasing the home. The amount of earnest money required will vary from builder to builder but at Hayden Homes, we typically require x amount for our new homes purchased in Washington, Idaho, and Oregon.
Down Payment
A down payment is the amount of cash that is applied towards the purchase of your new home at the time of closing.  When purchasing a new home, a cash down payment is typically required.  However, down payment amounts vary depending on the type of loan being secured.  It’s important that you discuss your individual needs with a qualified new home lender like Washington Trust.
Escrow may be the most confusing of all of the homebuying terms, but it’s one of the most important to know. Essentially, escrow is the process by which a third party holds money that will later be transferred to a separate party at the conclusion of a transaction. Remember the purpose of earnest money discussed above? Earnest money doesn’t go directly into the hands of the seller; instead, it is held “in escrow” until you and the seller finalize the sale.
Finally, closing – the day that every new homebuyer waits for! During closing, all documents and contracts related to your purchase will be reviewed, funds will be exchanged, and the title and deed of your new home will be signed over to you. Congratulations – you’re a new homeowner!
About Hayden Homes
Established in Redmond, Oregon in 1989, Hayden Homes has provided over 17,000 new homes, in over 300 communities, to price conscious, value-driven homebuyers in underserved, secondary markets throughout Washington, Oregon and Idaho. Hayden Homes continues to be the largest privately-owned new home builder in the Pacific Northwest.
With a commitment to building a strong community together, Hayden Homes has contributed 3.2 billion dollars to local economies and has created more than 62,000 jobs since the company’s inception. Hayden Homes supports philanthropic efforts in the communities in which they build and have contributed more than 18.3 million dollars in charitable donations with the flagship of their giving through the 501(c)(3) Non-Profit, First Story. To date, First Story has provided 82 deserving and capable families throughout the Pacific Northwest with a safe, healthy affordable home and a first step toward financial freedom. The Hayden Homes brand family of companies includes Simplicity by Hayden Homes, Wise Size Homes and Hayden Homes, all providing an unparalleled selection of opportunities for those looking to purchase a new home