When investing in properties and showing them to clients, it is important to be knowledgeable in which terms are most commonly used by fellow realtors. One common term is title insurance. Title insurance is a type of protection that saves clients against any financial loss associated with the ownership of a particular property. You will also need to be familiar with different types of mortgages. A fixed-rate mortgage has an unchanging interest rate, whereas the interest with an adjustable-rate mortgage varies.
- Your debt to income ratio is known as your DTI, and it is what lenders use to determine what you can afford each month.
- Be sure to research every policy and stipulation located within your contractual agreement before legally abiding to any loan process.
- If a client is signing on with a property that is overseen by an HOA, it is vital that they become well-versed in the regulations beforehand.
“If the plan is to live in the home for a few years and then sell, an adjustable-rate mortgage may make sense.”